Spring Budget 2024: Our highlights and summary

Spring Budget 2024: Our highlights and summary

Given the limited room that the Chancellor had for significant changes in tax, spending, or borrowing, the Spring Budget presented few surprises.

Nevertheless, there were some notable announcements impacting individuals and businesses.

The headline announcement for workers was a further cut to national insurance contributions, however many will see these tax saving wiped out by the Chancellors decision not to adjust personal tax thresholds or the personal allowance, with inflation pushing individuals into higher tax rates.

The Chancellor addressed some concerns by reforming the high-income child benefit charge tax trap, albeit not entirely eliminating it. Additionally, raising the VAT registration threshold and making modest changes to capital gains tax were steps in the right direction, though some may argue for bolder reforms.

The decision to abolish the ‘non-dom’ status to fund tax cuts for working families could impact investment in the UK, prompting affected individuals to relocate. Introducing a new residency-based system may mitigate this, but its effectiveness remains to be seen.

Focused mainly on workers, the Budget lacked significant provisions for pensioners, perhaps relying on the triple lock guarantee to secure their support. Ultimately, the Budget aimed to maintain economic stability in preparation for the upcoming election, with the Chancellor hoping to dispel doubts about the Conservative party’s economic competence.

Whether the Budget succeeds in this remains uncertain, as does the timing of a general election and the potential for further fiscal events to sway voters.

Below, you can find our ‘at a glance’ highlights, as well as our full Spring Budget Summary Guide. We hope these provide you with useful updates and if you have any questions about how you are affected, please do get in touch with our team.

At a glance

National insurance reduction

The headline rate of national insurance for employees has been reduced by an additional two percentage points, from 10% to 8%. This measure, combined with the previous two percentage point cut announced in November, will save the average worker £900. Additionally, the rate for the self-employed will be lowered from 8% to 6%.

ISA reform

£5,000 UK ISA tax allowance for savers investing in “UK-focused” shares – to be set up following a consultation.

Child benefit charge

Full child benefits to be paid to households where highest-earning parent earns up to £60,000 – the current limit is £50,000. A partial child benefit to be paid where highest earner earns up to £80,000.

New non-dom rules

The non-dom tax regime, for UK residents whose permanent home is overseas, to be replaced with new rules from April 2025.

VAT threshold raised

Threshold at which small businesses must register to pay VAT raised from £85,000 to £90,000 from April.

Capital gains tax reduction

Higher rate of tax paid on profits from selling second homes and rental properties cut from 28% to 24%.

Holiday lets

Tax breaks for owners of holiday let properties scrapped.

Stamp duty tax break

Stamp duty tax break when purchasing multiple properties in England or Northern Ireland to end in June.

Fuel duty frozen

Fuel duty has been frozen for the 14th consecutive year and a 5p cut to petrol taxes that was introduced in 2022 to alleviate the cost of living crisis will be kept in place.

Business rates

The small business multiplier will be frozen for another year, while the 75% Retail, Hospitality and Leisure relief will be extended for 2024/25.

Alcohol duty frozen

The government will freeze alcohol duty from 1 August 2024 until 1 February 2025.

Download our summary guide

Find out more about the announcements and read our commentary in our full Spring Budget 2024 – Summary Guide [3.1mb].

1600 1008 Rouse Partners

Oscar Wingham

Oscar heads our tax department and provides advice on tax structuring, planning and compliance services to entrepreneurs and their businesses. See more

All stories by : Oscar Wingham

This information has been produced by Rouse Partners LLP for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of this information is accepted by Rouse Partners LLP. In all cases appropriate advice should be sought before making a decision.

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