We’ve worked with our partners to compile a summary of the 2024 Spring Budget. In addition to the following summary, a full analysis is available here.
Your Financial Planner will discuss any implications of these changes at your Annual Planning Meeting but if you have any pressing or urgent questions, then please get in touch.
In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation focused on the trade-offs that might be required around cutting taxes and meeting both fiscal rules and spending commitments. Ultimately the Chancellor had it both ways, with some headline grabbing measures aimed at easing the tax burden on earners and families, while also introducing some tax increases to cover their costs.
In a speech punctuated by several interventions from the Deputy Speaker for order, there were some key headline items.
For the employed
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%
For business owners
From 1 April 2024, the VAT registration and de-registration levels will be increased to £90,000 and £88,000 respectively.
For savers
A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.
For property owners
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 6 April 2025.
Multiple dwelling relief within the stamp duty land tax (SDLT) regime for England and Northern Ireland will be abolished from 1 June 2024.
For non doms
The non-domicile rules will be replaced with a new regime based on residence from April 2025.
For parents
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from April 2024, while the rate at which the charge is levied will be halved, so that child benefit will not be fully withdrawn until an individual’s income reaches £80,000.
As ever the Budget publications contained a wide range of detailed proposals and much to digest. Our Budget summary highlights the key aspects likely to affect you.
If you are a client of Emery Little and have urgent questions, please get in touch. Otherwise, your Financial Planner will discuss any implications for you in your Annual Planning Meeting.
If you’re not a client of Emery Little but would like to understand how the Budget could affect your financial future, please get in touch.
