The Spring Budget 2024

In what was widely expected to be Mr. Hunt’s final Budget ahead of an election, speculation in the final run up 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:

• 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%.

• 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from April 2024, while the rate at which the charge is levied will be halved, so that child benefit will not be fully withdrawn until an individual’s income reaches £80,000.

• For residential property disposals, the higher rate of capital gains tax (CGT) will be cut from 28% to 24% from 6 April 2024.

• A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.

• The furnished holiday letting tax regime will be abolished from 6 April 2025.

• From 1 April 2024, the VAT registration and de-registration levels will be increased to £90,000 and £88,000 respectively.

• The non-domicile rules will be replaced with a new regime based on residence from 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.

• Alcohol and fuel duties are frozen.

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.