Spring Budget 2024 Summary

Please download below our summary of the Spring Budget delivered by the Chancellor Jeremy Hunt on Wednesday 6 March.

In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation in the final run up focused on the trade-offs that might be required around cutting taxes and meeting both fiscal rules and spending commitments. Ultimately the Chancellor had it both ways, with some headline grabbing measures aimed at easing the tax burden on earners and families, while also introducing some tax increases to cover their costs.

In a speech punctuated by several interventions from the Deputy Speaker for order, there were some key headline items:

  • The main class 1 national insurance contribution (NIC) rate will drop from 10% to 8% from 6 April 2024, the second cut in six months.
  • The main rate of class 4 self-employed NICs will similarly reduce from 8% to 6%.
  • The high income child benefit charge (HICBC) will be reformed. The threshold increases to £60,000 from April 2024, while the rate at which the charge is levied will be halved, so that child benefit will not be fully withdrawn until an individual’s income reaches £80,000.
  • For residential property disposals, the higher rate of capital gains tax (CGT) will be cut from 28% to 24% from 6 April 2024.
  • A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.
  • The furnished holiday letting tax regime will be abolished from 6 April 2025.
  • From 1 April 2024, the VAT registration and de-registration levels will be increased to £90,000 and £88,000 respectively.
  • The non-domicile rules will be replaced with a new regime based on residence from April 2025.
  • Multiple dwelling relief within the stamp duty land tax (SDLT) regime for England and Northern Ireland will be abolished from 1 June 2024.
  • Alcohol and fuel duties are frozen.

Tax treatment varies according to individual circumstances and is subject to change.

As ever the Budget publications contained a wide range of detailed proposals and much to digest. Our Budget Summary highlights the key aspects likely to affect you. If you have any questions about what you should do next, please get in touch.

 

Quilter Financial Adviser: Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. March 2024

You can view our Citrus Bites Spring Budget Bulletin video here.

Don’t forget to register for our webinar!

Bank of England Cuts Interest Rates – What Does This Mean for You

The Bank of England has cut the base rate from 4.75% to 4.5%, marking the third reduction in this cycle. But is this a sign of hope for borrowers, or...

How to Find Your Lost Pensions and Claim Your Money: Tips from David Braithwaite, Money Mentor

Did you know that there are billions of pounds in lost pensions across the UK? In this week’s episode, David Braithwaite, Money Mentor, shares expert...

Welcome Phoebe Mills to Citrus Financial!

We’re delighted to welcome Phoebe Mills to the Citrus Financial team! Bringing Experience and Expertise Phoebe joins us as a Technical Administrator...

Stay in the loop

SUBSCRIBE TO OUR MONTHLY NEWSLETTER