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Spring Budget 2024

March 6, 2024

The latest budget was likely to be the last time for Jeremy Hunt and his Government, although a date for the next general election is yet to be set. Mr Hunt declared that this would be a “Budget for long-term growth” and outlined various measures.

Tax relief for businesses

This budget didn’t have much for businesses:

  • VAT registration threshold increased to £90,000, first increase in seven years
  • Fully Expensing capital allowance to be amended to include expenditure on leased assets, “when fiscal conditions allow”, creating opportunities for businesses to reduce their Corporation Tax liability in the future

Property tax

The Chancellor wanted to tackle key property issues in the UK:

  • The Furnished Holiday lettings (FHL) tax regime would be abolished from April 2025 – encouraging holiday homeowners to dispose of their properties and discourage future purchases of homes in areas of high demand
  • Adjustment to the Capital Gains Tax (CGT) for second and additional home sales for higher and additional rate taxpayers to bolster the housing market by reducing their CGT rate from 28% to 24%
  • Elimination of the Multiple Dwellings Relief which currently provides a discount for bulk purchases under the Stamp Duty Land Tax system

Personal tax

The individual taxpayer was the focus of the speech:

  • From 06 April 2024 the primary rate of Class 1 employee National Insurance Contributions (NICs) will be reduced from 10% to 8%
  • 2p reduction in the main rate of National Insurance for the self-employed – Class 4 will be 6% from 06 April 2024
  • High Income Benefit Charge was increased to £60,000 from £50,000. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.
  • Capital Gains Tax annual exemption will drop to £3,000 in the 2024/25 tax year
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