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Spring Budget 2024: The Headlines

  • Writer: Chater Allan LLP
    Chater Allan LLP
  • Mar 6, 2024
  • 1 min read

Updated: Mar 8, 2024

The Chancellor presented the Spring Budget 2024 to Parliament on Wednesday 6th March 2024. We've put together this short article to summarise the key changes that were announced this week.


Personal Tax

  • Current tax treatment for non-domiciled individuals is planned to be abolished from 6th April 2025. This will be replaced by a new residence-based test.

  • From 6th April 2024, the threshold for the claw back of the Child Benefit will be increased from £50,000 to £60,000. Additionally, the taper has been extended so that you will fully repay your Child Benefit if your income exceeds £80,000. The Government also announced that there are plans to move this test to a household income basis from April 2026, rather than on an individual basis.

  • The Chancellor has announced plans for a new UK ISA with it's own £5,000 allowance, separate to the current ISA allowance of £20,000.

  • From 6th April 2024, the higher rate of capital gains tax on residential property will be reduced from 28% to 24%.

  • The furnished holiday lettings regime will be abolished from 6th April 2025.

  • Further reductions have been made to National Insurance, with the main rate of Class 1 reducing to 8% and Class 4 NIC reducing to 6%. These changes will take effect from 6th April 2024.

Corporation Tax

  • From April 2024, there will be a new Independent Film Tax Credit relief.

  • The Chancellor has confirmed that full expensing will be made permanent. Full expensing allows for a 100% first year allowance for main pool plant and machinery expenditure, and a 50% first year allowance for expenditure in the special rate pool.

VAT

  • From 1st April 2024, the threshold for VAT registration has been increased from £85,000 to £90,000.

  • The deregistration threshold has also been increased from £83,000 to £88,000 from 1st April 2024.


In the next week, our clients will receive a full analysis document detailing the changes announced in the Spring Budget 2024.


If you have any questions or queries regarding the Budget, please do not hesitate to contact us.

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