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Spring Budget 2024: Key headlines

Spring Budget 2024: Key headlines

Matthew Grief



TAXES 

  • Employee National Insurance cut by 2p from 10% to 8% and the main rate of Class 4 NICs for the self-employed cut from 8% to 6% from 6 April 2024.
  • Capital Gains Tax on property reduced from 28% to 24% from April 2024.
  • Multiple Dwellings Relief to be abolished from June 2024 and the Furnished Holiday Lettings tax regime will be abolished from April 2025.
  • The non-dom tax status will be abolished and replaced from April 2025.  Under the new scheme, new arrivals to the UK will pay the same tax as everyone else after four years.
  • The sunset clause on the Energy Profits Levy extended to March 2029.
  • Air passenger duty to increase for non-economy plane tickets. 

SUPPORT FOR BUSINESSES

  • The VAT registration threshold for businesses increased from £85,000 to £90,000.
  • 40% relief on gross business rates until 2034 for eligible film studios.
  • A new tax credit for independent British films with a budget of less than £15 million.
  • Tax reliefs for orchestras, museums, galleries and theatres made permanent at 45% tax relief for touring productions and 40% relief for non-touring  productions.
  • Full expensing for businesses will apply to leased assets in future ‘when affordable’. A draft bill is to be published shortly. 

BENEFITS AND SAVINGS

  • The High Income Child Benefit Charge will move to a household-based system from April 2026 following consultation. In the meantime, the threshold to start paying back Child Benefit will increase in April 2024 from £50,000 to £60,000 and the threshold at which Child Benefit needs to be repaid in full will increase to £80,000.
  • A new ‘British ISA’ allowing an additional £5,000 annual investment in UK equities tax-free.
  • New British Savings Bonds offering savers a guaranteed rate for 3 years.
  • The Household Support Fund extended for an extra 6 months to September 2024.
  • The £90 fee for Debt Relief Orders abolished.

 TOBACCO, VAPING AND ALCOHOL

  • The freeze on alcohol duty extended until February 2025.
  • A new excise duty on vaping products to be introduced from October 2026 alongside a one-off increase in tobacco tax.

 FUEL DUTY

  • Fuel duty frozen again and the 5p cut to fuel duty extended for a further 12 months until March 2025
business taxpayrollprivate client taxVAT