Here are the key points from today's Budget...
Employers National Insurance contributions up 1.2% to 15%. The threshold at which employers start paying NI will be lowered from £9,100 to £5,000 a year. However, the amount employers can claim back increased from £5,000 to £10,500.
National Living Wage up by 6.7% to £12.21 an hour in April. Minimum wage for 18-20 year olds up by 16.3% to £10 an hour in April.
Business rates – there will be a 40% discount for the retail, hospitality and leisure sectors. Lower rates for retail, hospitality and leisure businesses to be introduced from 2026/27. These measures apply to England only. Whether they apply in Wales will be a decision for Welsh Government.
Income tax & National Insurance thresholds to remain frozen until 2028/29. They will increase in line with inflation after that.
Corporation tax rates to be frozen until at least the next General Election.
Fuel duty frozen next year & existing 5p per litre cut retained.
State pension triple lock retained.
Capital Gains Tax – lower rate increased to 18%, higher rate increased to 24%.
Inheritance Tax – frozen to 2030.
Smoking – hand-rolled tobacco duty up by inflation plus 10%, all other tobacco by inflation plus 2%, flat-rate duty on all vaping liquid from 2026.
Alcohol - Draught duty cut by 1.7% (1p off a pint in the pub). Duty to go up in line with RPI on non-draught products from February.
Electric vehicles – existing company car tax incentives to remain until 2028.
Air passenger duty – additional £2 per average economy flight; duty on private jet journeys to increase by 50%.
The 'non-dom' tax regime to be abolished.
Stamp duty for second homes to increase to 5% from tomorrow.
Windfall tax on oil and gas profits will increase to 38% and will now expire in March 2030.
VAT on private school fees will apply from January with legislation to follow in April to remove business rates relief.
Welsh Government to receive an extra £1.7 billion for 2025/26 to improve public services. There will be an additional £25 million for the maintenance of coal tips.
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