The Chancellor delivered his Spring Budget on 6 March 2024. This is a summary of how it may affect you. More details should be announced by the Government in due course.
National Insurance
From 6 April 2024, the main rate of employee’s NIC is reduced to 8 per cent, and that of Class 4 NIC payable by the self-employed to 6 per cent. There are no changes to employer’s NIC.
Child benefit
At present, if you are a couple with children and either of you have income over £50,000 per annum, you should pay back some or all of your child benefit. This is an example, one of many, in which tax law does not follow logic or natural justice.
From 6 April 2024, the income threshold above which you should start paying back your child benefit is increased to £60,000.
Capital Gains Tax and Stamp Duty
At present, capital gains tax rates on residential property disposals are 18 per cent or 28 per cent, depending on your level of income. From 6 April 2024, they will be 18 per cent and 24 per cent.
Multiple dwellings relief from stamp duty land tax will be abolished for transfers which will take place on or after 1 June 2024. Where contracts have been exchanged on or before 6 March 2024 the relief may continue to be available.
Furnished Holiday Lettings
At present, if you have a furnished holiday letting business, you can take advantage of various tax reliefs – notably on mortgage interest – that are not available to other residential landlords. This will no longer be the case from 6 April 2025.
Non-domiciled individuals
At present, if you are UK resident but not UK domiciled, you may be able to exclude foreign income and gains from UK tax when they are not remitted to the UK. From 6 April 2025, the non-domiciled tax status will be abolished. New arrivals to the UK who have not lived here in the past 10 years may not be charged UK tax on foreign income and gains for the first 4 years of UK residence.
VAT
From 1 April 2024 the VAT registration threshold increases to £90.000, and the deregistration threshold to £88,000.
Please bear in mind that we do not accept responsibility for any action taken, or not taken, only because of reading the above. You should contact us for specific advice on your own circumstances before deciding.