Headlines from the Spring Budget 2024 are as follows:

National Insurance

  • Reduction of 2% in employee NICs, reducing the rate to 8% from April 2024
  • Reduction of 2% in self-employed Class 4 NICs reducing the rate to 6% from April 2024
  • Class 2 NICs abolished from 5 April 2024, as previously announced

Income tax

  • Increase in the threshold at which Child Benefit is withdrawn
  • Non-dom status to be abolished with effect from April 2025, and to be replaced by a new “Foreign Income and Gains” regime
  • Other rates and allowances remain frozen; after deduction of the personal allowance £12,570, income is taxed as follows:

Basic rate          £0 – £37,700             20% (Dividends 8.75%)

Higher rate       £37,701 – £125,140  40% (Dividends 33.75%)

Additional rate Over £125,140          45% (Dividends 39.35%)

Property taxes

  • Abolition of the Furnished Holiday Let regime
  • Reduction in the higher-rate of capital gains tax on residential property to 24%

Savings

  • A new ‘UK ISA’ to be introduced to encourage investment in UK companies
  • British Savings Bonds to be issued by NS&L

VAT

  • Increase in the VAT registration threshold to £90,000

Inheritance tax

  • Rates and allowances remain unchanged

Contact Don Fisher for further information.