Spring Budget 2024 – Key highlights To discuss any issues or opportunities arising from the Spring Budget, email enquiries@om.uk or speak to your usual Old Mill contact.
INDIVIDUAL
BUSINESS
ECONOMY
National Insurance
Business Investment
Growth
National Insurance main rate cut from 10% to 8% for employees, and from 8% to 6% for the selfemployed from April 2024.
Business investment rising to 10.6% of GDP from 9.9% currently. . VAT Threshold
Office for Budget Responsibility (OBR) expects economy to grow by 0.8% this year, and 1.9% next year.
Non-Domicile Tax Regime
VAT registration threshold will go up by £5,000 to £90,000.
Debt
To be reformed from April 2025 and ultimately scrapped, for nonUK nationals in the UK who have a non-domiciled tax status.
PROPERTY BENEFITS High Income Child Benefit Charge Threshold changing from £50k to £60k from April 2024 and the top taper rate will extend to £80k. From 2026, the threshold assessment will be changing from individual to household income.
OTHER POINTS Public Spending Day-to-day public spending being kept at 1% growth.
Capital Gains Tax Capital Gains Tax higher rate for residential property is to be reduced from 28% to 24% from April 2024. FHL Scheme Abolished The Furnished Holiday Lettings regime will be abolished from April 2025, to scrap tax breaks for second-home owners who let to holidaymakers. Stamp Duty Land Tax (SDLT) Change Stamp Duty Land Tax Multiple Dwellings Relief is being abolished from 1 June 2024.
Lowest national debt in the G7: forecasts expecting debt to fall below 94% by 2028. Public Sector Borrowing Borrowing figures due to hit below 3%, 3 years earlier than forecast.
DUTIES Fuel Duty Fuel Duty frozen for the next 12 months, remaining at its current rate of 52.95p per litre, extending the current 5p cut due to end this month. Alcohol Duty Alcohol Duty freeze extended to February 2025. Vape Levy & Tobacco Duty Vape Levy and one-off increase in Tobacco Duty announced.
NHS Productivity Plan Pledged to fund the £3.4bn productivity plan in full to modernise the NHS systems. ‘British’ ISA A new form of ISA which will come in the form of an extra £5,000 taxfree allowance.
All details are correct at the date of publishing – Old Mill is a trading name of Old Mill Accountancy Limited. Registered in England Number 13566765. Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. Registered office Maltravers House, Petters Way, Yeovil, Somerset, BA20 1SH