Goodman Jones Spring Budget 2024

1 6 March 2024 l BUDGET @ Copyright 6 March 2024. All rights reserved. This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication. CONTENTS Budget highlights 1 Introduction 2 Personal taxation 3 Pensions, savings and investments 7 Capital taxes 9 Welfare and family support 10 Business taxes 11 Value added tax 14 Tax administration 14 NICs 16 BUDGET HIGHLIGHTS ■ T he main rate of class 1 employee national insurance contributions (NICs) will be cut from 10% to 8% with effect from 6 April 2024 and the main rate of class 4 self-employed NICs will also be reduced from 8% to 6%. ■ T he high income child benefit charge (HICBC) will be reformed, increasing the HICBC threshold to £60,000 from April 2024. The rate at which HICBC is charged will be halved so that child benefit is not fully withdrawn until individuals have an income of at least £80,000. HICBC will apply on a household rather than an individual basis by April 2026. ■ A n additional UK individual savings account (ISA) will be created with a £5,000 allowance in addition to the current £20,000 ISA limit. ■ T he higher rate of capital gains tax (CGT) for residential property disposals will be cut from 28% to 24% from 6 April 2024. ■ T he furnished holiday lettings tax regime will be abolished from 6 April 2025. ■ T he value added tax (VAT) registration threshold will rise from £85,000 to £90,000 from 1 April 2024. The deregistration threshold will rise from £83,000 to £88,000. ■ T he non-UK domicile rules will be replaced, from 6 April 2025, with a regime based on residence.