The Chancellor of the Exchequer, Jeremy Hunt presented his Spring Budget 2024 to Parliament on Wednesday 6 March 2024. We have highlighted the key points below:
Personal Tax
National Insurance Contributions
A cut has been made to the main rate of Class 1 employee NICs from 10% to 8% and will come into affect from 6 April 2024.
A cut has been made to the main rate of Class 4 self-employed NICs from 9% to 6% and will come into affect from 6 April 2024.
Alongside these cuts, the government announced that it will consult on Class 2 NICs abolition later this year. This will save an average self-employed person on £28,000 £650 a year.
Taken together with changes at Autumn Statement, this is a tax cut worth over £20bn per year, the largest ever cut to employee and self-employed National Insurance.
Tax Rules For Non-UK Domiciled Individuals
The government is introducing a new residence-based regime taking effect from 6 April 2025. The current remittance basis of taxation will be abolished for UK resident non-domiciled individuals. The old basis will be replaced with a new 4-year foreign income and gains (FIG) regime for individuals who become a UK tax resident after a period of 10 years of non-UK tax residence.
High Income Child Benefit Charge
An announcement has been made increasing the high income child benefit charge to £60,000 (formerly £50,000) and will come into affect from 6 April 2024.
The charge is tapered so if you, or your partner, earn between £60,000 and £80,000 it may still be worth your while financially to claim. For instance, you’ll be charged 1% of your Child Benefit for every £200 of income that exceeds £60,000. If your income exceeds £80,000, the charge is equal to the amount of the Child Benefit payment.
The government are intending to base this on household income rather than individual income by April 2026, but will be consulting on this further in due course.
Capital Gains Tax
A reduction has been made to the higher rate of Capital Gains Tax charged on residential property gains from 28% to 24% for disposals made on or after 6 April 2024.
The lower rate of 18% will remain the same.
Individual Saving Account
The government are intending to introduce a new £5,000 allowance for UK ISAs. This is in addition to the existing ISA allowance.
Income Tax Self Assessment
The government will improve and simplify HMRC's digital services to support Income Tax Self Assessment taxpayers seeking to pay tax in instalments by improving its payment options online.
Excise and Duties
The VAT threshold will increase to £90,000 from 1 April 2024. The level at which a business can apply for de-registration will increase from £83,000 up to £88,000.
Stamp Duty Land Tax - first time buyers relief will be extended and the government have announced the abolition of multiple dwellings relief.
For more information please visit:
Kommentarer