On 6 March 2024, Chancellor Jeremy Hunt delivered a Spring Budget to the UK, focussing on productivity and long term growth.
Below we’ve outlined the key measures announced, or you can read our detailed Spring Budget summary.
Individuals:
- The main rate of Class 1 National Insurance contributions for employees will be reduced by another 2%, from 10% to 8%.
- The High Income Child Benefit Charge will be based on household income from April 2026. In the interim, the income threshold has been increased from £50,000 to £60,000, with tapering of the benefit for those earning between £60,000 and £80,000.
- The ‘Non-Dom’ tax status will be ‘abolished’ and replaced by a new ‘modern, simpler and fairer’ system from April 2025. After four years, those staying in the UK will pay the same tax as other UK residents.
- A new ‘British ISA’ will provide an extra £5,000 tax-free allowance annually for investments made exclusively in UK assets.
Self-employed:
- The main rate of Class 4 National Insurance contributions will be reduced from 8% to 6%.
Businesses:
- The government are to consult on extending the ‘full expensing’ capital allowances regime to leased assets.
- The lifespan of the Energy Profits Levy is to be extended to 31 March 2029.
Property:
- The capital gains tax rate payable on residential property sales is to be cut from 28% to 24%.
- Stamp duty relief for those buying more than one dwelling is to be abolished.
- The Furnished Holiday Lettings regime is to be scrapped in April 2025.
VAT and duties:
- The VAT registration threshold is to increase by £5,000 to £90,000.
- Vaping tax to be paid on imports by manufacturers, specifically on the liquid in vapes, will be introduced in October 2026.
- Alcohol duty, that was due to rise by 3% in August 2024, will now be frozen until 2025.
- Fuel duty has been frozen at its current level for another year; with the 5p cut to the duty also being extended.
Public services:
- A 1% increase in day-to-day public spending above inflation has been preserved.
- Military spending will rise from 2% to 2.5% of GDP ‘as soon as economic conditions allow’.
- A £3.4 billion investment into the NHS, aiming to modernise the productivity of the service.
Business developments:
- More than £1 billion in additional tax over the next five years for the creative industries. This will include:
- Spending £26.4 million on the National Theatre
- Independent films with a budget below £15 million to receive and new tax credit
- The Treasury to provide eligible film studios in England with 40% relief on their gross business rates until 2034.
Our team of experts will be analysing the details behind the key measures to explain how it will impact your business.
If you would like to discuss anything within your own context further, please do not hesitate to get in touch with a member of our Tax team below.
The Team
Our experienced and approachable team are on-hand to assist you, please get in touch below:
