Spring Budget 2024

Jeremy Hunt delivered his Spring Budget yesterday, which he says is aimed at boosting growth and putting money back in the pockets of working families.

Below we take a look at some of the key points raised:

Personal Tax

There have been no changes to the tax-free personal allowance or tax thresholds.

The largest tax cut was experienced by the NICs, with a 2% cut on the rate of employee NICs on earnings between the lower and upper earnings limit from 10% to 8%.

Child Benefit Charge

The Child Benefit Charge on high income currently applies where an individual in the household earns more than £50,000, regardless of the total household income. The government is committed to moving to a system based on combined household rather than individual incomes by April 2026.

From April 2024 the threshold for the High-Income Child Benefit Charge will rise to £60,000 taking 170,000 families out of paying this tax. The rate of the charge will also be halved so that Child Benefit is not repaid in full until you earn £80,000.

Capital Gains Tax

From April 2024, the higher rate of capital gains tax (CGT) on the disposal of residential properties will be reduced from 28% to 24%.

Business Tax

VAT registration limit will be increased from £85,000 to £90,000.

Other Points

The Recovery Loan Scheme (RLS) has been extended and renamed as the Growth Guarantee Scheme.

Fuel duty has been frozen for the coming year. The 5p cut in fuel duty rates have been extended for a further 12 months and the planned inflation increase has been cancelled.

The alcohol duty freeze has been extended to February 2025 cutting costs for breweries, bars, restaurants and others.

The current tax regime for UK non-doms will end from April 2025.

To find out more about what the budget means for you and your business, please check out our article below.

Spring Budget 2024