Chancellor Jeremy Hunt has presented the details for the Spring Budget in the House of Commons, the last scheduled before the anticipated general election later this year. The speech covers a lot of grounds. Here is a roundup:
Tax Measures and Income Support
- National Insurance rates reduced by 2 per cent for both employed and self-employed: employees’ NI from 10% to 8%, whilst self-employed individuals from 8% to 6%, effective beginning 6 April 2024.
- An extra tax-free £5,000 allowance for ‘British ISA’ on top of the existing allowance of £20,000.
- Property capital gains tax higher rate reduced from 28% to 24%.
- Non-dom tax status to be scrapped beginning April 2025 for a new system.
- Extended repayment period for emergency budgeting government loans to people on benefits.
- Fuel duty remains unchanged at 5 per cent for another year.
- DWP’s Household Support Fund to continue for another six months.
Business
- VAT threshold for small businesses increased from £85,000 to £90,000.
- The Covid-era government loan schemes for small businesses extended until March 2026.
Housing
- Various tax breaks for furnished holiday let owners scrapped.
- Stamp duty multiple dwelling relief for buyers in England or Northern Ireland scrapped beginning June 2024.
- UK government to build up to 1 million new homes.
Families
- Income threshold for child benefit to increase to £60,000 from £50,000 starting April 2024.
- Partial child benefit to be paid to households where the highest earner earns up to £80,000.
Other Measures
- An additional £120 million to support green energy projects.
- £1 million dedicated to building a memorial honouring Muslims who served in the British armed forces during World War One and Two.
- Tax reliefs for touring and orchestral productions now made permanent.
- New tax credit to introduce for independent UK films with a budget of less than £15 million.
For more UK tax news, stay tuned to Legend Financial. You may also reach out to us for your tax, accountancy, business development, and financial advisory needs!
References
Budget summary: Key points from Jeremy Hunt’s speech. 7 March 2024. Retrieved from BBC: https://www.bbc.com/news/business-68359756
What does the Budget mean for you and your money? 7 March 2024. Retrieved from BBC: https://www.bbc.com/news/business-68480102
SPRING BUDGET 2024. 6 March 2024. Retrieved from Gov.UK: https://assets.publishing.service.gov.uk/media/65e8578eb559930011ade
2cb/E03057752_HMT_Spring_Budget_Mar_24_Web_Accessible__2_.pdf
SPRING BUDGET 2024. 6 March 2024. Retrieved from Gov.UK: https://assets.publishing.service.gov.uk/
media/65e8578eb559930011ade2cb/
E03057752_
HMT_Spring_Budget_Mar_24_
Web_Accessible__2_.pdf
