Spring Budget 2024
London office, St Albans office
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On Wednesday 6 March Jeremy Hunt unveiled his Spring Budget, pledging “much needed help in challenging times” announcing key measures with focus on lower taxes, more investment and better public services in what has been classed as the “Budget for Long Term growth”, in the lead up to the next general election. The question is has he gone far enough?
In his Spring Budget, Jeremy Hunt maintains that he is on course to increasing the size of economy by 0.2% in 2028-29 and meeting fiscal rules, taking decisions required over the long term to create a brighter future.
The key announcements made in the Spring Budget of 2024 can be found in our comprehensive summary, and can be downloaded by clicking the image or link below. We hope that the summary will add clarity and shed some light as to how these changes may impact you and your business.
For any further assistance on any of the announcements made, or to book a personal consultation, feel free to contact our tax experts Mark Moore or Marina Trinchese.
The Spring Budget highlights:
- There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000. The reduction is £1 for every £2 of income above £100,000, meaning there is no personal allowance where adjusted net income exceeds £125,140.
- Dividend Allowance will be reduced from £1,000 to £500 from 6 April 2024
- Introduction of new £5,000 UK ISA Allowance, under consultation. This will be in addition to the existing ISA allowance
- High Income Child Benefit threshold to be assessed on a household-basis by April 2026 and immediate support to be given to working families, raising the threshold from £50,000 to £60,000 with top of the taper adjusted to £80,000
- Non Dom remittance based Regime to be abolished and replaced with residence based regime. From April 2025 new arrivals to the UK will not pay any tax on foreign income and gains for their first four years of their tax residency. After four years those who continue to live in the UK will pay UK tax on foreign income and gains.
- Inheritance Tax (IHT) is currently a domicile-based system. The government announced the intention to move to a residence-based system, subject to consultation, but no changes to IHT will take effect before 6 April 2025.
- The government has further cut the main rate of Class 1 employee NICs from 10% by another 2p to 8% from 6 April 2024
- Class 4 self-employed NICs will be cut from 9% to 6% from 6 April 2024.
- Class 2 self-employed NICs will be abolished from 6 April 2024.
- The NMW has been extended to included 21-22 year olds.
- The Furnished Holiday Lettings (FHL) tax regime will be abolished from April 2025
- (MTD) for Income Tax Self Assessment (ITSA) on small businesses will be implemented from April 2026
- Full Expensing which allows a business to claim 100% tax relief on capital expenditure, will be made permanent.
- Capital Gains Tax annual exempt amount will be reduced from £6,000 to £3,000 from 6 April 2024.
- The VAT registration threshold is to increase from £85,000 to £95,000 from the start of April 2024
- Stamp Duty Land Tax (SDLT) abolition of Multiple Dwelling Relief (MDR) from 01 June 2024
- 5p cut in fuel duty will be extended to March 2025
- Alcohol duty freeze to be extended till February 2025
- A new duty on vaping products will be introduced from 1 October 2026
Get in touch
If you have any questions relating to any of the announcements covered in this Spring Budget and how they may impact you and your business, please do not hesitate to contact us by completing the form below or get in touch with one of our tax experts.
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