UK Budget 2024: Key Takeaways for Stakeholderz Ecosystem
The UK Budget 2024, announced on October 30, brings impactful changes that may affect businesses, investors, and the sustainability sector. Among the main updates:
Business Impact
- Employer’s National Insurance is set to rise from 13.8% to 15% in April 2025, impacting hiring costs, while the Employment Allowance increase to £10,500 may offer relief for smaller firms.
- Corporation tax remains at 25%, one of the lowest in the G7, while Business Asset Disposal Relief rates will gradually rise, making the exit landscape more challenging for founders.
Investor Takeaways
- Capital Gains Tax saw a moderate increase, though below income tax levels, which affects post-sale reinvestment for angel investors.
- The (S)EIS and VCT tax relief schemes remain attractive, continuing to encourage early-stage investments. Inheritance tax relief on AIM and Aquis shares was preserved but reduced to 50%.
Sustainability Initiatives
- Major investments were announced for green hydrogen projects and carbon capture, with the UK aiming to establish itself as a “clean energy superpower.”
These changes reflect the government’s attempt to balance public finances while creating an appealing environment for businesses and investors alike.
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