Goodman Jones Spring Budget 2024

BUDGET l 15 March 2023 4 6 arc 2 24 PERSONAL TAXATION Income tax The personal allowance for 2024/25 to 2027/28 will remain at £12,570 and the higher rate threshold will stay at £50,270, as previously announced. In Scotland, for 2024/25, the starter and basic rate bands will grow by 6.7%, while the upper limit of the intermediate rate band will be frozen, narrowing the width of the band. A new advanced rate of 45% will be introduced in Scotland on taxable income between £62,430 and £125,140, after which the top rate will apply at a rate of 48% (compared with the current 47%). These changes were announced in last December’s Scottish Budget statement. Savings rate band The 0% band for the starting rate for savings income for 2024/25 will remain at its current level of £5,000. Dividend tax The dividend allowance will reduce to £500 for 2024/25, as announced in November 2022. The rates of tax on dividends above the dividend allowance will remain unchanged. High income child benefit charge (HICBC) The HICBC threshold will increase to £60,000 from April 2024. The rate at which HICBC is charged will also be halved, so that child benefit is not fully withdrawn until individuals have income of at least £80,000 (against £60,000 currently). HICBC will be administered on a household rather than an individual basis by April 2026. Consultation on the reform will begin in due course. Targeting support to households The government will consult shortly on options to enable better targeting of economic support to households. The aim will be > SAVER Don’t lose your personal allowance. Your personal allowance of £12,570 is reduced by £1 for every £2 of income between £100,000 and £125,140. You may be able to make a pension contribution or a charitable gift to bring your income below £100,000.