Changes to National Insurance contributions (NICs) and tax policies have been announced by the Chancellor. Take a look at the upcoming adjustments, including reductions in NICs rates for employees and the self-employed, changes to Capital Gains Tax rates, the introduction of a new British ISA allowance, updates to VAT registration thresholds, and plans to extend Full Expensing to leased assets. These changes are effective from 6 April 2024 and aim to support individuals and foster investment in promising UK enterprises.
Spring Budget 2024 – What changed?
Chancellor Jeremy Hunt presented his ‘Budget for Sustainable Growth’ on Wednesday, 6th March 2024. He pledged increased investment, job creation, enhanced public services, and reduced taxes. What does it mean for you and your business?
Reduced Taxes
Coming into effect from 6 April 2024, NICs rates will be reduced for both employees and the self-employed. A reduction in the higher rate of Capital Gains Tax applicable to residential property sales was noted, plus the introduction of a new British ISA allowance. The Chancellor raised the threshold for VAT registration to £90,000 and announced plans to extend Full Expensing to leased assets.
The Chancellor enabled his reductions through a series of tax-raising steps. These included implementing a new system for non-domiciles, abolishing the Furnished Holiday Lettings tax regime and Multiple Dwellings Relief, introducing a new duty on vaping, and raising tobacco duty.
Spring Budget 2024 Key Updates
- Non-Domiciled Regime: to be scrapped from 6th April 2025, a simpler system will be introduced. Transitional rules will be in place for those currently using the regime. No tax will be due on overseas income for the first 4 years of tax residency (provided you have been non-UK tax resident for 10 years prior to arrival). Overseas workdays relief will still be available for the first three years of tax residency.
- IHT: A move towards a residence-based regime for IHT will be consulted on
- CGT: Residential property CGT reduced from 28% to 24% from 6 April 2024 (but remember the annual exempt amount for CGT is reducing to £3,000 from this date)
- National Insurance: Employees NIC reducing from 10% to 8% and self-employed NIC reducing from 8% to 6% from 6 April 2024
- Income Tax/CGT: Furnished holiday letting (‘FHL’) regime to be abolished from 6 April 2025
- Stamp Duty Land Tax: Multiple Dwellings Relief to be abolished from 1 June 2024
- High Income Child Benefit Charge: threshold in which child benefit begins to be clawed back increased to £60,000. Can now earn £80,000 before entire benefit is withdrawn. Regime will be reformed to be based on household income by April 2026
- VAT: Vat threshold increased to £90k turnover
- Corporation Tax: Remains unchanged
HB Accountants Spring Budget Guide
Read or download our Budget Guide below;
If you would like to talk to us about looking after your personal or business tax, call us on 01992 444466. We’re experts ready to support you and your business, no matter your company size or sector.
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any error.
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