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Spring Budget 2024: Summary of Key Points



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




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