Spring Budget 2024

Jeremy Hunt’s second (and possibly last!) Spring Budget was described by the Chancellor as a “Budget for Long Term Growth”. 

The Chancellor announced several changes to deliver this objective, including another 2% reduction in the employee rate of NIC (which, when combined with last Autumn’s reduction, has now fallen from 12% to 8%).  The Chancellor’s stated aim is to “reduce the penalty for working” and hopefully fill some of the current 900,000 job vacancies in the UK.  The independent OBR has commented that last Autumn’s and today’s NIC reductions are equivalent to 200,000 more people in work, which will be welcomed by most businesses who continue to face the significant challenge of finding new staff.

Other announcements that were aimed at “reducing the penalty for working” were reforms to the £50k child benefit threshold and an increase in the VAT registration threshold from £85k to £90k.  This latter change is long overdue as it is 7 years since it was last increased, and we continue to wonder why the inheritance tax nil rate band of £325k has not been increased given it is 15 years since it was last increased (ignoring the complex residence nil rate band that was introduced back in 2017).  Inheritance tax changes did not make an appearance today and we suspect that the much-debated potential changes (or even abolition of inheritance tax!) will feature in the Conservatives election manifesto later this year.

Other areas of tax did however see some fundamental reforms, with the favourable tax regime for furnished holiday lettings being completely abolished, stamp duty land tax multiple dwellings relief being withdrawn and significant changes to the “non-dom” tax regime.

It wasn’t all bad news for residential property owners, with the higher 28% Capital Gains Tax rate being reduced to 24%, but this change appeared to have an element of politics behind it as it allowed the Chancellor the opportunity to refer to the recent media coverage over Angela Rayner’s sale of a house back in 2015.

Whilst today’s Budget was presented as being a “Budget for Long Term Growth” it was, as expected, largely politically driven with the forthcoming general election very much in mind.

The Spring Budget 2024 announcements cover the following topics:

• Income Tax & NIC
• Capital Gains Tax
• High Income Child Benefit Charge
• Furnished Holiday Lets
• Non-UK Domiciled Individuals (Non-Doms)
• Capital Allowances
• Research & Development
• Cultural Tax Reliefs
• Stamp Duty Land Tax
• Inheritance Tax
• Universal Credit
• Investments & Pensions
• VAT & Duties

Please click here to read and download the Spring Budget 2024 highlights as a PDF.

If you have any queries on the Spring Budget 2024 please do not hesitate to contact one of our tax specialists on 01228 530913 or 01768 864466 or by email at hello@doddaccountants.co.uk.