On the 6th March 2024 Chancellor, Jeremy Hunt, delivered his Spring Budget where he promised permanent cuts in taxation. But did he deliver? This is our low down of the ‘need-to-knows’ for the main event…
Alcohol and Fuel Duties
- Duty charged on alcohol will be frozen for a further 12 months until February 2025 to assist the pub and hospitality sectors
- Fuel duty will be frozen for a further 12 months, ending in February 2025
Investments
- A new British ISA is going to be introduced to allow and an additional £5,000 ISA investment in UK shares on top of the current £20,000 allowance
Business Taxes and Reliefs
- The compulsory VAT registration threshold will be increasing from the current £85,000 to £90,000 from April 2024
- The full expensing tax break to be extended to leased assets
- Multiple dwellings relief and Furnished Holiday Lets reliefs to be abolished
Personal Taxes and Reliefs
- There will be a reduction made to the upper capital gains tax rate on residential property from 28% to 24%
- The current Non-Domiciled tax status for those with permanent homes overseas to be abolished from April 2025 and replaced with a more modern, simpler, and fairer residency system
- From April 2024 employees NI to be cut from 10% to 8%
- From April 2024 self-employed class 4 NI to be cut from 8% to 6%
Child Benefit
- Plans are to be put in place to end the unfairness in child benefit eligibility by April 2026.
- From April 2024 the lower threshold for when child benefit begins to be lost will start at £60,000 (increased from £50,000). The taper of when the full child benefit will be withdrawn will extend to £80,000 (from £60,000)
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