Spring Budget 2024

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Introduction


On 6 March 2024, the Chancellor Jeremy Hunt, delivered the Spring Budget. We have made a
summary of the key measures impacting limited companies and individuals.

Personal taxes and allowances

From 6 th April 2024, the following will be in effect unless otherwise specified.

Property Taxes

  • There will be a reduction of higher capital gains tax rate on property from 28% to 24%.
  • The Furnished Holiday Lettings regime is to be abolished.
  • The Multiple Dwellings Tax Relief will be abolished.

Non-Domiciled Status

  • Introduction of new tax system for non-domiciled residents
  • Reform of the domicile rules, replacing “Non-Dom” status with a new residency rule
  • From April 2025, new arrivals to the UK will not be required to pay any tax on foreign income and gains for the first four years of UK residency.
  • After four years, those who continue to live in the UK will pay the same tax as other residents.
  • “Transitional arrangements” will be put in place for those benefiting from the current system.
  • “Non-Doms” are people who live in the UK but claim tax on their permanent place of residence abroad, meaning they do not have to pay UK tax rates on foreign income.

Child Benefit

  • There will be a reform of the Higher Income Child Benefit
  • The threshold will be raised from £50,000 to £60,000 and bring the taper up to £80,000 from £60,000

National Insurance

  • National Insurance will be cut be a further 2% from 10% to 8% for employees.
  • A cut in Class 4 NICs from 8% to 6% for self-employed persons.
  • The Employers’ NICs allowance is unchanged.

Other

  • Inflation in the UK has fallen from 11% to 4% in just over 12 months, and it is anticipated to
  • fall below 2% in the next two months per the Office for Budget Responsibility forecast.
  • The VAT registration threshold for businesses is to increase from £85,000 to £90,000 from 1 April 2024
  • Creative industry relief
  • There will be a 5% increase in the rate of tax credit and the 80% cap for visual effects costs will be removed in the Audio-Visual Expenditure Credit.
  • There is to be an increase in repayment period from 12 to 24 months for new budgeting advance loans for people on low incomes.
  • The freeze on alcohol duty will be extended until February 2025
  • The extension of the fuel duty freeze will continue for another 12 months. The 5p cut to the levy will remain in place.
  • There will be a reform of Individual Savings Account (ISA) system to encourage investment in UK assets. A new £5,000 British investment ISA on top of existing ISA allowances
  • A new Excise duty on Vapes from October 2026 “to discourage non-smokers from taking up vaping” and a one-off increase in tobacco duty.

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