Spring Budget 2024
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.
