Spring Budget 2024 – Key Points


Tax Changes:

  • Employees’ national insurance contributions will decrease from 10% to 8% starting in April, benefiting approximately 27 million workers, with potential annual savings of up to £450.
  • Self-employed individuals will also see a two-percentage-point reduction in their national insurance rates.
  • The higher rate of property capital gains tax will be lowered from 28% to 24%.
  • The non-domicile tax status is eliminated, preventing foreign nationals residing in the UK but officially domiciled abroad from evading UK taxes on overseas income or capital gains. A simpler residency-based tax system will be implemented by 2025.
  • Stamp duty relief for multiple dwelling purchases in a single transaction, known as Multiple Dwellings Relief, is eliminated.
  • The furnished holiday lettings regime is abolished to address distortions and ensure more properties are available for long-term rentals by local residents.
  • Air passenger duty will increase for non-economy class passengers.
  • The energy profits levy, a windfall tax on UK-produced oil and gas, is extended until 2029.

Benefit Adjustments:

  • The High Income Child Benefit Charge, affecting households where one parent earns over £50,000 annually, will transition to a household-based system. The threshold increases to £60,000 in April, with the taper limit raised to £80,000.
  • The household support fund is extended for an additional six months.
  • The £90 fee for obtaining a debt relief order is scrapped.
  • Repayment periods for low-income individuals taking out new budgeting advance loans will extend from 12 to 24 months.
  • A new British ISA allowing £5,000 annual investments in UK businesses, with tax advantages similar to other ISAs, will be introduced alongside existing allowances.
  • A new British Savings Bond, administered by NSNI, offering a fixed guaranteed rate for three years will be launched to encourage savings.

Business Support Measures:

  • Full expensing for leased assets by businesses will be implemented in the future, subject to affordability, with a draft bill to be published soon.
  • The VAT registration threshold for businesses is increased from £85,000 to £90,000.
  • Eligible film studios in England will benefit from 40% relief on their gross business rates until 2034. Tax relief for touring and orchestral productions will be permanently set at 45%, with non-touring productions receiving 40%.

Economic Outlook:

  • The Office for Budget Responsibility forecasts UK GDP growth of 0.8% in 2024 and 1.9% in 2025, compared to previous predictions of 0.7% and 1.4%, respectively.
  • Treasury borrowing is expected to reach 91.7% of GDP in 2024-25 and 92.8% in 2025-26, slightly higher than previous estimates.
  • Inflation is projected to fall below target within a few months.

NHS Funding:

  • An additional £2.5 billion will be allocated to the NHS this year to address issues such as waiting lists.
  • Planned growth in day-to-day public sector spending will be maintained at 1% in real terms, with a focus on improving efficiency, including full funding for the NHS productivity plan to enhance digital transformation
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