Jeremy Hunt has finished his Spring Budget 2024 speech. Amongst the rhetoric, there were several measures that we would like to bring to your attention. He was particularly keen to try and “make work pay” saying:
“If we are to build a high wage, high skill economy not dependent on migration, if we want to encourage people not in work, to come back to work, we need a simpler, fairer tax system that makes work pay”.
This prefaced the announcement of a 2p cut in National Insurance.
More details on the measures announced in the Budget will follow in our Budget summary tomorrow, but for now, here are the headlines:
- VAT registration threshold increased to £90k from 1 April 2024
- Reform planned for the ISA system, including introducing a British ISA, which will add a further £5,000 to the ISA allowance
- Furnished holiday lettings tax regime abolished from April 2025
- Stamp Duty Multiple Dwellings Relief will be abolished from 1 June 2024
- Higher rate of property Capital Gains Tax reduced from 28% to 24% from 6 April 2024
- Energy Profits levy extended until 2029
- Current tax system for non-doms abolished and to be replaced with a residency-based system. From April 2025 new arrivals to the UK will not be required to pay any tax on foreign income and gains for their first 4 years of UK residency. After 4 years, if they continue to live in the UK, they will pay the same tax as other UK residents. Transitional arrangements will apply
- Reform for Child Benefit system – Government will consult on moving High Income Child Benefit charge to a household-based system to be introduced from April 2026. From April 2024 the High Income Child Benefit charge threshold will be raised from £50,000 to £60,000. The top of the taper will be increased to £80,000
- From 6 April 2024, employee National Insurance contributions will be cut by 2p from 10% to 8%. Self-employed National Insurance contributions will be cut from 8% to 6%
We will be analysing the details behind the headlines over the coming days.
If you would like to speak with us about any of the issues raised, please do get in touch.