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7th March 2024
Thank you to all who attended our Spring Budget Evening at The Courtyard.
Our Head of Taxation Geoff Fraser outlined the key points from the budget announcement. Geoff was joined by Paul Hancock from Think Information Technology Ltd who discussed common cyber security attacks.
The full presentation can be viewed below, or download our handy pdf here.
For further information or advice get in touch with one of our experts.
The Chancellor made further changes to NICs following the cuts made in the Autumn Statement 2023. The rates for NICs will be cut by two percentage points for both employees and the self-employed from 6 April 2024.
This will see Class 1 employee NICs reduced from 10% to 8% from 6 April 2024, down from 12% at the end of last year. Meanwhile, Class 4 self-employed NICs are cut from 9% to 6% from 6 April 2024.
Mr Hunt made a number of other changes that will relieve the tax burden on businesses, families, and motorists. He cut the higher rate of capital gains tax on residential property disposals from 28% to 24%. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.
The threshold for VAT registration will be lifted from £85,000 to £90,000 from 1 April 2024. According to the government, this will mean 28,000 businesses will no longer be VAT registered in 2024/25.
Fuel duty will remain at its current rate and be frozen for 2024/25. Alcohol duty is also frozen for 2024/25.
The Budget saw the creation of a new ISA that will allow people to invest in UK-focused assets. The new UK ISA creates an allowance of £5,000. This will be in addition to the £20,000 that can be subscribed into an ISA. The government will consult on the details.
The Chancellor made his cut to NICs possible with a series of tax raising measures. These include the abolition of the Furnished Holiday Lettings regime and Multiple Dwellings Relief, alongside a new duty on vaping and an increase in tobacco duty.
In addition, the Chancellor announced a one-off adjustment on Air Passenger Duty (APD) rates for non-economy passengers.
The government is also extending the Energy Profits Levy, also known as the windfall tax on oil and gas companies, by an additional year to March 2029 as gas prices are forecast to remain ‘abnormally high’ until that time.
The UK’s tax rules for non-UK domiciled individuals will be replaced with a residence-based regime that Mr Hunt says will raise £2.7 billion in revenue.
This new regime will commence on 6 April 2025 and applies UK-wide. Individuals who opt in to the new regime will be exempt from UK tax on foreign income and gains for their first four years of residence in the UK, while the government will make transitional arrangements for existing non-doms.
For further information on the 2024 Spring Budget and what the measures mean for you and your business, visit our summary: Spring Budget summary.
Please do not hesitate to contact us with any queries you may have.
