Spring Budget Summary 2024

Overview

• Most tax rates and allowances were announced in advance at the Autumn Statement, and the significant new proposals were all predicted – there were no surprises
• These key points include measures that were announced previously but are about to come into force
• Measures which have been announced but will not take effect during 2024 are listed separately below

Key points for the Spring Budget 2024:

Personal tax

• The main personal tax-free allowance (£12,570) and the 40% tax rate threshold (£50,270) remain frozen at their present levels until the end of 2027/28, representing a tax rise where income increases
• The 45% threshold remains £125,140 for 2024/25
• Tax-free dividend allowance falls from £1,000 to £500, and CGT annual exempt amount falls from £6,000 to £3,000, for 2024/25
• ISA investment limit remains £20,000 – a new ‘British ISA’ to encourage investment in British companies, with a £5,000 annual limit, will be introduced after consultation
• Further reductions in National Insurance Contributions in addition to those announced in the Autumn Statement: from 6 April 2024, Employees’ Class 1 NIC reduced from 10% (was 12% up to 5 January 2024) to 8%, and Class 4 NIC rate for the self-employed cut from 9% to 6% (a cut to 8% was announced in the Autumn Statement)
• The income threshold above which Child Benefit is clawed back by the High Income Child Benefit Charge (HICBC) will rise from £50,000 to £60,000 in 2024/25, and the clawback will be spread over £20,000 of income (instead of £10,000 up to now)
• The higher rate of CGT payable on disposals of residential property will fall from 28% to 24% for disposals from 6 April 2024
• Stamp Duty Land Tax Multiple Dwellings Relief to be abolished from 1 June 2024
• IHT thresholds and rates unchanged to the end of 2027/28

Business tax

• No significant changes to corporation tax or capital allowances
• Extensions to the tax reliefs available to creative industries
• Increase in the VAT registration turnover threshold from £85,000 to £90,000 from 1 April 2024
• Recovery Loan Scheme renamed as Growth Guarantee Scheme and extended to support small and medium enterprises (SMEs)
• Tax measures to be introduced later
• The beneficial treatment of short-term Furnished Holiday Lettings as a trade for tax purposes will be abolished from 6 April 2025
• The advantageous treatment of non-UK domiciled individuals (‘non-doms’) will be abolished from 6 April 2025, and will be replaced by a residence-based system with transitional rules for those affected
• The HICBC will be assessed on the combined income of a household from 6 April 2026, to remove the present unfair treatment of a single-earner household
• ‘Full expensing’ tax relief for company purchases of capital assets will be extended to leased assets when fiscal conditions allow, following a consultation

Other measures

• Fuel duty frozen, and temporary 5p reduction retained, for another year
• HMRC given more money to collect outstanding tax debts, budgeted to raise approximately £1 billion every year from 2025/26 to 2028/29

Please complete the form below to download a full copy of our PDF Spring Budget Summary 2024.

If you have any questions relating to any of the areas within the Spring Budget, please contact us on the details below.

(E) enquiries@advaloremgroup.uk (T) 01908 219100 (W) advaloremgroup.uk