Spring Budget 2024
Spring Budget 2024
How does the spring budget 2024 affect you and your business?
In the Spring Budget on 6 March 2024 Chancellor Jeremy Hunt says lower taxes means higher growth.
We highlight below some of the proposed changes in the Spring Budget 2024:-
Debt Relief Order
A Debt Relief Order (DRO) is a solution to deal with personal debts you cannot pay. Getting a Debt Relief Order costs £90, this charge is now being abolished.
Boost Investment for business
- Vehicle leasing companies will benefit from so-called full expensing the Chancellor announced he will publish draft legislation for full expensing to apply to leased assets.
- Extend recovery loan scheme for small business
- Increase VAT registration from £85k to £90k from 1 April 2024.
Levelling up power
- More powers to local leaders with £100m worth of levelling up funding across the UK.
- £5m for renovating village halls
- £26m of funding for National Theatre
- New British ISA will allow further £5000 investment.
- There are 900,000 vacancies today in the UK, those can work should. To support the child care sector the rate paid to child care providers for next 2 years is guaranteed
Public Services
FUND NHS productivity plan in full – speeding up results, improving IT and using AI, updating the NHS App removing paper, reducing missed appointments, electronic staff App for rotas. All hospitals using electronic records, digital transformation helping the NHS to meet pressures to focus on reducing waiting times and improving efficiencies.
Too many legal cases in family law should never go to court and it would cost the government less to fund non-court resolution and digitalise the court process.
Property
Furnished Holiday Letting
Following Tenacious representation looked at furnished holidays tax regime, not enough properties are available on a long term rental, the government will abolish furnished holidays letting tax regime
Stamp duty
From 1 June 2024, the government is abolishing Multiple Dwellings Relief, a bulk purchase relief in the Stamp Duty Land Tax regime. This follows an external evaluation which showed no strong evidence the relief is meeting its original objectives of supporting investment in the private rented sector. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before 1 June 2024.
Don’t be confused between additional property high rates on Stamp Duty and Multiple Dwelling Relief. What is a Multiple Dwelling Relief?
Capital Gains Tax
CGT on residential property will reduce CGT from 28% to 24%
Taxes paid by residents in the UK but not domiciled in the UK for tax purposes (known as nom-dom)
The current system will be abolished in April 2025. An individual who lives in the UK but claims tax on their permanent place of residence abroad will not pay tax for the first 4 years, after 4 years they will pay the same tax as other UK residents as after 4 years they will not have non-dom status.
Employment
Benefit Change April 2026 – HMRC will move to a house based system, as these changes will take some time implement there are two other changes taking place from today to make the system fairer – this April High Income Child Benefit Threshold will increase to £60k the higher taper threshold to £80k.
Employee National Insurance
From 6 April 2024 an Employee’s national insurance rate will be cut by 2p from 10% to 8%
Self- Employed National Insurance
From 6 April 2024 someone who is self-employed national insurance rate will be cut from 6% to 2%
Alcohol duty – the freeze of alcohol duty has been extended until February 2025.
Fuel Duty – the government will maintain a 5p cut in fuel duty for another 12 months.
