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Spring Budget 2024

Key takeaways:

📍 Starting April, the threshold for small businesses required to register for VAT will rise from £85,000 to £90,000.

📍 There will be a further reduction in the national insurance contribution rate from 10% to 8%, effective April 2024 for employees. This complements the earlier 2p reduction announced in November, lowering the rate from 12% to 10%.

📍 For self employed, this means that the main rate of Class 4 NICs will now be reduced from 8% to 6%. Combined with the abolition of Class 2 payment, this will save an average self-employed person with £28,000 profit around £650 a year.

📍 Hunt also announced a new British ISA. Subject to a forthcoming consultations, UK-focused shares will soon give an extra £5,000 UK ISA tax allowance to those investing in UK companies.

📍 A new British Savings Bond will be launched in April by NS&I and will offer a guaranteed rate, fixed for 3 years.

📍 The non-domicile tax status, applicable to UK residents with permanent homes overseas, will be replaced with new rules from April 2025.

📍 Full child benefits will extend to households where the highest-earning parent earns up to £60,000, an increase from the current limit of £50,000. Partial child benefits will be extended to households with the highest earner earning up to £80,000.

📍 The government's support fund helping with cost of living will continue for an additional six months.

📍 Fuel duty will remain frozen, with the 5p cut in petrol and diesel duty. It was originally set to expire later this month, but will be extended for another year.

📍 Air passenger duty for premium economy and business class tickets will see over 10% increase.

📍 The higher rate of Capital Gains Tax on profits from property sales will be reduced from 28% to 24%.

📍 The government's Covid-era loan scheme for small businesses will be extended until March 2026.

📍 Hunt anticipates inflation to dip below the government's 2% target in the coming months, down from 4% in January, nearly a year ahead of the forecast outlined in the autumn statement.


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