2024 Spring Budget

The Spring 2024 budget is likely to be the last before the next general election and the majority of measures announced were broadly in line with what has been rumoured over the last few days.

With the independent Office for Budget Responsibility (OBR) confirming inflation is set to fall to the government’s 2% target a year earlier than previously expected, the Chancellor said he would stick to the plan to improve living standards by rewarding work and growing the economy.

The main agenda continues to be rewarding working people and getting the unemployed into work, with the following measures:

  • Employee National Insurance gets a further 2p reduction from 10% to 8% in April 2024 (following a reduction from 12% which took effect in January).
  • Workers who are self-employed also get a second tax cut through a further 2p reduction in the NICs main rate from 8% to 6%.
  • The High Income Child Benefit Charge, which currently kicks in if one parent earns above £50,000 a year, is to move to a household-based system by April 2026. In the meantime, the threshold will rise to £60,000 from April 2024. The top of the taper where it is withdrawn is raised to £80,000.

Other main points:

  • The VAT registration threshold will be raised from £85,000 to £90,000 from April.
  • The covid recovery loan scheme for businesses is to be extended until March 2026.
  • The Furnished Holiday Lettings tax regime will be abolished from April 2025, meaning they will be taxed the same way as residential lettings.
  • The higher rate of Capital Gains Tax (CGT) on residential property will be cut from 28% to 24% from April 2024.
  • The introduction of a new UK ISA allowing an additional £5,000 annual investment in UK equities tax-free and new British Savings Bonds, which offer savers a guaranteed rate for 3 years.
  • The Non-dom tax regime, for UK residents whose permanent home is overseas, will be scrapped and replaced with new rules from April 2025.
  • A duty on vapes will be introduced from October 2026.

All the finer details of the Spring Budget 2024 can be found on the gov website

Get in touch

If you have any questions regarding the details in the Chancellor’s statement, please call the office on 01392 241228 or email Misty at misty@griffinaccountancy.co.uk.