The Spring Budget was definitely a pre election budget.
The key points are as follows:
- 2% reduction of the class 1 national insurance for employees from 10% to 8% from April 2024 – four weeks time! (I pity the payroll software providers!)
- 2% reduction of the class 4 national insurance for self employed from 8% to 6% from April 2024 (remember the reduction from 9% to 8% was announced in the Autumn 2023 statement)
- no change to the personal allowance
- no change to the basic rate of tax – staying at 20% for the foreseeable future
- net income threshold for High Income Child Benefit Charge will be increased to £60,000 from april 2024
- new UK ISA additional £5,000 per year tax free, on top of the current ISA allowance of £20,000) to invest in UK-focused assets
- abolition of furnished holiday lettings from April 2025
- changes to the CGT rate on UK residential property disposals – higher rate of 28% being reduced to 24% with effect from April 2024
- VAT registration threshold increased to £90,000 with effect from April 2024
- VAT deregistration threshold increased from £83,000 to £88,000 with effect from April 2024
- additional support for independent film
- additional tax relief for expenditure on visual effects
- permanent rates for theatre, orchestra, museum and galleries tax relief
- changes to the taxation of non-UK domiciled individuals (for income tax, CGT & IHT)
Lots of details in the small print – if you need to discuss any of the above points, feel free to give us a ring.
