Spring Budget 2024

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Against the backdrop of recession and increased government borrowing costs, Chancellor Jeremy Hunt delivered today’s Spring Statement.

Most of the announcements had already been released to the press – no big surprises – a bit underwhelming in its detail.  Headlines include:

VAT

  • Threshold increased from £85k to £90K (it has been frozen for seven years and the rise of £5k doesn’t compensate for this).

Property tax

  • Furnished holiday letting regime abolished.
  • Multiple dwelling relief (MDR) abolished.
  • Capital Gains Tax (higher rate) on property reduced from 28% to 24%.

Personal tax

  • Current Non Dom tax system abolished. It will be replaced with a residency based system from April 2025.
  • Child benefit system is to be amended to a household system by April 2026. Two quick fixes to be implemented by April 2024 – the high income benefit threshold will be increased from £50k to 60k and the upper taper threshold increased to £80k (from £60k).
  • National Insurance will be reduced. Employee rate will be reduced from 10% to 8%.  Self employed Class 4 NI rate reduced from 8% to 6%.
  • It is expected that the individual tax burden will continue to increase due to the fiscal drag of personal tax allowances in an inflationary economy.