The Chancellor delivered his the Spring Budget on 6 March 2024, with the tax announcements, summarised below.
Individuals
National Insurance Contribution (NIC)
The main rate of Class 1 employee NICs will be reduced by 2p from 10% to 8% from 6 April 2024. This is in addition to the 2p cut announced at Autumn Statement 2023 with effect from 6 January 2024.
The main rate of Class 4 NICs, paid by self-employed individuals, will be reduced from 9% to 6% from 6 April 2024. This replaces the cut to 8% announced at Autumn Statement 2023.
High income child benefit charge
The threshold for the High Income Child Benefit Charge will rise from £50,000 to £60,000 from 6 April 2024, and there will be a tapered charge between £60,000 and £80,000.
It is planned that from April 2026, the Charge will be assessed on household income rather than one based on individual incomes.
Capital gains tax
The higher rate of Capital Gains Tax on residential properties will be reduced from 28% to 24% from 6 April 2024. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.
Non-domiciled individuals
From 6 April 2025, the current tax regime for non-UK domiciled individuals (non-doms) will be abolished and replaced with a new regime with transitional rules applying to those currently benefitting from the remittance basis
UK ISA
A ‘UK ISA’ will be introduced giving individuals an extra £5,000 allowance, on top of the existing ISA allowance, to invest in UK companies.
Furnished holiday lettings
The government abolished the Furnished Holiday Lettings tax regime from 6 April 2025.
Businesses
VAT registration threshold
The government will increase the VAT registration threshold to £90,000 and the VAT deregistration threshold to £88,000 from 1 April 2024.
Capital allowances
At the Autumn Statement 2023, the government made full expensing permanent, allowing businesses to write off the full cost of qualifying plant and machinery investments against their taxable profits.
The government has now announced that full expensing will be extended to assets for leasing when fiscal conditions allow and will shortly publish a draft legislation.
Other Announcements
Stamp duty land tax
The government will abolish Multiple Dwellings Relief from 1 June 2024.