Key Points of Spring Budget 2024
Below is a summary of some of the key points announced recently.
Personal Tax
National Insurance
The main rate of Class 1 employee National Insurance Contributions (NIC) will be reduced from 10% to 8%, effective from 6th April 2024. A further cut of 2p to the main rate of Class 4 self-employed NICs will be made from 6th April 2024, taking this to 6%.
High-Income Child Benefit Charge (HICBC)
The HIBC income threshold will be increased from £50,000 to £60,000 from 6th April 2024 and the taper will be extended up to £80,000. It is intended that income will be based on household, rather than individual, income by April 2026. Further announcements regarding this will be made in due course.
Capital Gains Tax
The higher Capital Gains Tax rate for residential property disposals will decrease from 28% to 24%. The change will be effective for disposals taking place on or after 6th April 2024. The lower rate of 18% will remain unchanged.
Furnished Holiday Lettings
The Government will revoke the current rules for Furnished Holiday Lettings for individuals and corporations from April 2025. Draft legislation regarding this will be published in due course.
Non-UK Domiciled Individuals
The current remittance basis of taxation will be aboslished for UK resident non-domiciled individuals from 6th April 2025. This will be replaced from 6th April 2025 with a new 4-year foreign income and gains (FIG)
regime for individuals who become a UK tax resident after a period of 10 years of non-UK tax residence.
VAT
The VAT threshold will increase to £90,000 from 1st April 2024 and the level at which a business can apply for de-registration will increase from £83,000 to £88,000.
Stamp Duty Land Tax (SDLT)
First Time Buyer’s Relief
This will be extended to individuals who use nominee and bare trust arrangements when buying a new lease over a dwelling they intend to use as their main or only residence.
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