Spring Budget 2024

Please see our Spring Budget summary

This month's newsletter covers the Spring Budget Statement by the Chancellor delivered on the 6^th April including the key takeaway points:

• High Income Child Tax Benefit up to £60k: High income child benefit charge threshold increased from £50,000 to £60,000 from April 2024
• The Chancellor has increased the current £85,000 VAT threshold to £90,000, the deregistration threshold has increased to £88,000 from £83,000.
• Self employed NICs reduced to 6%: National insurance for self employed cut to 6% from April.
• For 2024/25, income tax rates and thresholds remain frozen. Without inflationary increases to the income tax bands, the Chancellor is effectively imposing an income tax increase; as wages and earnings rise and a larger proportion falls into higher tax bands. This is known as 'fiscal drag'.
• Employee national insurance cut to 8% from the new tax year. No changes to employers' national insurance rates.
• CGT for landlords cut by 4%: Capital gains tax on sales of second homes and additional residential properties to 24%
• Changes to Companies House rules: we will send a separate communication article on this to summarise these significant changes.
• From 1^st June 2024, multiple dwellings relief will be abolished.
• Furnished holiday lettings tax break abolished: they will be treated the same as long term landlords for tax purposes.
• The specific tax treatment that will be abolished includes:
• the exemption from finance cost restriction rules;
• the beneficial capital allowance rules;
• access to reliefs from capital gains tax (CGT); and
• the inclusion of relevant UK earnings when calculating maximum pension relief.
• Abolition on non-dom status from 2025.