Spring Budget March 2024
Today, the government announced important tax changes in the Spring Budget speech. These changes aim to simplify and make the tax system fairer, keeping up with the economy while supporting public finances.
Here are the key points:
Personal Tax:
- Starting April 6, 2024, National Insurance contributions (NICs) for employees will be reduced from 10% to 8% and for self-employed individuals from 8% to 6%. Consultations will also be held on abolishing Class 2 NICs.
- Tax rules for non-UK individuals will change on April 6, 2025, affecting those living in the UK for tax purposes.
- The High-Income Child Benefit Charge (HICBC) income threshold will increase from £50,000 to £60,000 from April 6, 2024, with further changes planned for 2026.
- From April 6, 2024, Capital Gains Tax (CGT) rates for residential property sales will decrease from 28% to 24%.
- Furnished Holiday Lettings (FHL) rules will be abolished starting April 2025.
Business Tax:
- New tax reliefs and credits are introduced for theatres, orchestras, museums, galleries, and independent films.
- An expert advisory panel will support Research and Development (R&D) tax reliefs.
- Excise and Duties:
- VAT thresholds for businesses will increase to £90,000 from 1st April 2024. There will be consultations regarding VAT implications for the private hire vehicle sector.
- A new duty on vaping products will be introduced in October 2026, with consultations underway.
- Changes to Stamp Duty Land Tax (SDLT) include extending relief for first-time buyers and abolishing Multiple Dwellings Relief.
Refer to the Spring Budget 2024 documents for more details on these changes. Further tax announcements are expected on April 18, 2024, which won’t affect the Spring Finance Bill 2024.
