Jeremy Hunt has today unveiled 2024 Spring Budget. Below is a summary of some of the key points.
Economy
The Chancellor highlighted the low unemployment rate. Noting that interest rates were still high as the Bank of England tackles inflation. Inflation stands at 4% and the OBR forecasts show that inflation will continue to fall.
National debt is falling and the UK has the second lowest debt in the G7.
OBR forecasts show that growth will be 0.8% this year.
Income Tax and National Insurance
There had leaks concerning a cut to National Insurance, which were confirmed, with the Chancellor announcing a 2p cut to National Insurance (this tax will now stand at 8%). Self employed National Insurance to be be reduced from 8% to 6%.
The Chancellor announced his intention to continue to cut National Insurance.
Rumours had suggested that income tax would not be cut due to the high cost, and these proved true.
VAT Registration Threshold
VAT registration threshold to increase from £85,000, to £90,000 from 01 April 2024.
Child Benefit
High income child benefit charge to be moved to be based on household income from April 2026. Though from April 2024 the charge will start at £60,000, with the full taper only taking effect at £90,000.
Non-Dom Tax Status
New system to be introduced based on residency, with the current system to be abolished and a residency based system to be introduced; after four years people will be subject to the same tax requirements as residents.
Alcohol Duty
Duty freeze extended to February 2025.
Fuel Duty
Duty freeze and 5-p cut extended for another 12-months.
Investments
Full expensing to apply to leased assets, this will be introduced in specific legislation at a later date.
ISAs
New British ISA, to allow an additional £5,000 allowance for investment in British equities.
Vaping Duty
An excise duty will be introduced on vaping products, with a consultation to be announced.
Air Passenger Duty
None economy tickets to see an increase to air passenger duty.
Furnished Holiday Lets
The furnished holiday lets relief to be scrapped.
Multiple Dwellings Relief
Multiple dwellings relief to be scraped.
Capital Gains Tax
Higher rate of property CGT to be reduced from 28% to 24%.
Oil and Gas
Energy Profits Levy to be extended to 2029.
Source: CPAA
Full Budget: Spring Budget 2024 (HTML) - GOV.UK (www.gov.uk)