Spring Budget 2024
Please find a summary of the announcements from the Spring Budget, where we highlight the key talking points.
National Insurance cut by 2p
National Insurance, has been cut by 2p in the pound foremployees and the self-employed.
10% to 8% for the employed and 8% to 6% for the self-employed.
Property
From 6th April 2025 the Furnished Holiday Lettings (FHL) regime for landlords, who rent out second homes for short-term holiday makers will be abolished.
FHL's will then be treated the same as ordinary rental properties for tax purposes.
The stamp duty relief/multiple dwelling relief will be scrapped.
When you sell a property other than your main residence, thehigher capital gains tax rate will be reduced from 28% to 24%.The basic rate for property capital gains tax remains at 18%.
Non-Dom New Rules
The Non-dom tax regime for UK residents, whose permanent home is overseas, is to be replaced with a residency-based system from 6th April 2025.
From this day new arrivals into the UK will not be required to pay any tax on foreign income and gains, in the first four years of their UK residency. Following on from that normal UK taxation applies.
New British ISA
New 'British ISA' planned to be introduced for individual savers to invest in UK-listed companies, offering the same benefits as other ISAs (capped at £5,000 per annum).
British savings bonds are also to be released in April 2024.
Child Benefit Changes
From April 2024, the high-income child benefit charge threshold will increase from £50,000 to £60,000.
There will be a consultation by April 2026 on how the Child Benefit high-income charge will change from 'personal' (individual) income to 'household' income.
Business and Investment
The threshold at which all businesses must register to pay VAT raised from £85,000 to £90,000 from April 2024.
Full expensing tax break to be extended to leased assets. This allows businesses to write off the full or relevant cost of qualifying plant & machinery investments.
Transport & Energy
Fuel duty is frozen for another 12 months.
Air passenger duty, the tax paid on flights, to go up for business class tickets.
Cigarettes, Vapes & Alcohol
New tax on vaping products to start in October 2026.
Freeze on alcohol duty, which had been due to end in August, is to continue until February 2025.
