Everest and Co Accountants are committed to keeping you informed and ahead of the curve with the latest financial updates. In light of the recent Spring Budget 2024 announced by the Chancellor of the Exchequer, we're here to distill the essentials, focusing on the changes that matter most to you.
The Spring Budget 2024 sets ambitious goals: halving inflation, diminishing debt, and fostering economic growth. With a vision for long-term growth, the budget introduces several key measures aimed at affecting taxes in meaningful ways for individuals and businesses alike. Here's what you need to know:
For Employees and the Self-Employed:
- From 6 April 2024, Class 1 primary National Insurance contributions (NICs) for employees will reduce from 10% to 8%. Likewise, Class 4 NICs for the self-employed will see a decrease from 8% to 6%.
For Families:
- The high income child benefit charge (HICBC) threshold is set to rise from £50k to £60k, with full repayment levels increasing to £80k from the 2024-25 tax year. This will transition to a household-based assessment by April 2026.
For Property Owners and Buyers:
- Capital gains tax on residential property gains will be scaled back from 28% to 24% from April 2024. Moreover, Stamp Duty Land Tax reliefs are undergoing changes, with multiple dwellings relief abolished from 1 June 2024.
For Non-Uk Domiciled :
- Changes to the taxation of non-UK domiciled individuals are on the horizon, with the existing regime being replaced from 6 April 2025, offering tax relief on foreign income and gains for the first four years of UK residence.
For Businesses:
- A new tax relief framework is introduced for independent British films, offering a 53% tax credit for productions with budgets under £15m from 1 April 2024.
- The VAT registration threshold is set to increase, beneficial for small businesses, from £85,000 to £90,000 starting 1 April 2024.
For the Environment and Health:
- The budget maintains a 5p per litre cut and freeze on fuel duty until March 2025 and introduces an excise duty on vapes from October 2026.
These measures, amongst others detailed in the Spring Budget 2024, signify substantial shifts in the tax landscape, fundamentally aimed at nurturing a sustainable and prosperous economic future.
For further details, including Tax Information and Impact Notes (TIINS) and how these changes might directly affect you, we invite you to reach out to us at Everest and Co Accountants. Let's navigate these changes together, ensuring your financial well-being and success in the evolving economic environment.
Transcript of the chancellor, Jeremy Hunt is available on:
Spring Budget 2024 speech - www.gov.uk
Stay informed, stay prepared – with Everest and Co, paving your path through the updates of Spring Budget 2024.
Author - Mr. Anuj Paudel