Chancellor Jeremy Hunt delivered his Spring Budget earlier today and I wanted to share a brief update on some of the key points that might be of interest to you.
- National Insurance will be cut again for employees, by 2p from 10% to 8% from 6 April 2024. Following on from the 2p cut in the Autumn Statement last year, this could put over £900 a year back into the average worker’s pocket. Those who are self-employed will also see another drop from 8% to 6%, which saves the average self-employed worker around £650 a year when combined with the Autumn changes
- A new “British ISA” will be created with an extra £5,000 tax-free allowance and the opportunity to invest exclusively in UK companies
- The earnings threshold for child benefit was raised from £50,000 to £60,000 from 6 April 2024
- The higher rate of Capital Gains Tax (CGT) on property is to be reduced from 28% to 24% from April 2024
- The furnished holiday lettings regime is to be abolished from April 2025, making it easier for local people to find a home in their community
- Multiple dwellings relief will be abolished from June 2024
- The VAT threshold for small businesses will increase from £85,000 to £90,000 from 1 April 2024
- The 5p cut in fuel duty has been extended for another 12 months – until March 2025
- Alcohol duty freeze to be extended to February 2025
- One-off increase in tobacco duty in 2026 and new levy on vaping is to be introduced from October 2026
Tax rules can change and the impact of taxation, and any tax relief, depends on your personal circumstances.
Here to help
Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.
Source: gov.uk/government/publications/spring-budget-2024