Evelyn Partners' Spring Budget 2024 summary

A summary of Jeremy Hunt’s key announcements made during the 2024 Spring Budget

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Published: 06 Mar 2024 Updated: 06 Mar 2024

In what could potentially be his last Budget, the Chancellor of the Exchequer asserted his plans to “grow the economy”.

The key announcements included:

Personal measures

  • A reduction to National Insurance (NI). 2p will be taken off the Class 1 rate of NI contributions for employees, with the rate falling from 10% to 8%. The rates for people who are self-employed will also fall by another 2p down to 6%. These changes will come into effect from April 2024
  • The launch of the ‘British ISA’ with an additional allowance of £5,000 aimed at increasing investment into UK companies. At this stage, it’s unknown when this will be brought into effect
  • The current ‘non-dom’ tax regime, which broadly applies to UK residents whose permanent home is overseas, will be replaced in April 2025
  • The removal of multiple dwellings relief (MDR), a bulk purchase relief in the stamp duty land tax regime, from June 2024
  • Raising the threshold for the high-income child benefit charge (HICBC) in the immediate term from £50,000 to £60,000 from April 2024. There is a longer-term plan to move to a household-based system by April 2026
  • The higher rate of capital gains tax (CGT) on residential property will be cut from 28% to 24% from April 2024. The basic rate of CGT on residential property will remain at 18%
  • The abolition of the furnished holiday lets (FHLs) regime from 6 April 2025, to rebalance the tax treatment of holiday rentals compared to long-term lets

If you would like to know more about the changes announced and how they could affect you, your family and your business, contact us today.

Business-related measures

  • An increase in the VAT registration threshold from £85,000 to £90,000, effective from 1 April 2024
  • Full Expensing (FE) is expected to be extended to leased assets for plant-leasing companies. FE provides 100% corporation tax relief for capital expenditure. This will be implemented “as soon as cost efficient to do so”, subject to consultation

Evelyn Partners' Spring Budget 2024 summary

For more detailed information on the changes announced in the Budget, visit our Spring Budget hub where you’ll find informative webinars and full analyses of the announcements from our personal and business tax teams.