BSR Bespoke - Spring Budget 2024 Summary

The Chancellor announced changes across a range of key areas including, National Insurance, high income child benefit charge, furnished holiday lets, multiple dwellings relief and capital gains tax on property disposals.

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We have pleasure in attaching our summary of the key announcements in the 2024 Budget.

In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation in the run up focused on whether Income Tax or National Insurance would take the tax-cutting limelight.  Ultimately there were announcements across a range of key areas.

These include:

  • The main class 1 National Insurance Contribution (NIC) rate will drop from 10% to 8% from 6 April 2024, the second cut in six months.
  • The main rate of class 4 self-employed NICs will similarly reduce from 8% to 6%.
  • The high income child benefit charge (HICBC) will be reformed. The threshold increases to £60,000 from April 2024, while the rate at which the charge is levied will be halved, so that child benefit will not be fully withdrawn until an individual’s income reaches £80,000.
  • For residential property disposals, the higher rate of capital gains tax (CGT) will be cut from 28% to 24% from 6 April 2024.
  • The furnished holiday letting tax regime will be abolished from April 2025.
  • From 1 April 2024, the VAT registration and de-registration levels will be increased to £90,000 and £88,000 respectively.
  • A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.
  • The non-domicile rules will be replaced with a new regime based on residence from April 2025.
  • Multiple dwellings relief within the stamp duty land tax (SDLT) regime for England and Northern Ireland will be abolished from 1 June 2024.
  • Alcohol and fuel duties are frozen.

We trust that you find the enclosed Budget Summary useful and that it is a helpful basis for a discussion with us about your financial future.

Download the 2024 Spring Budget Summary

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