Fantastic resource from Evans Mockler, please download the PDF for full information.
In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation in the final run up focused on the trade-offs that might be required around cutting taxes and meeting both fiscal rules and spending commitments. Ultimately the Chancellor had it both ways, with some headline grabbing measures aimed at easing the tax burden on earners and families, while also introducing some tax increases to cover their costs.
In a speech punctuated by several interventions from the Deputy Speaker for order, there were some key headline items:
· The main class 1 national insurance contribution (NIC) rate will drop from 10% to 8% from 6 April 2024, the second cut in six months.
· The main rate of class 4 self-employed NICs will similarly reduce from 8% to 6%.
· From 6 April 2024 the repayment threshold for the high income child benefit charge (HICBC) will be raised to £60,000 and full clawback will only occur once income reaches £80,000. From 6 April 2026 the HICBC will apply to households as opposed to individuals and the government will consult on this new system in the interim.
· For residential property disposals, the higher rate of capital gains tax (CGT) will be cut from 28% to 24% from 6 April 2024.
· A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.
· The furnished holiday letting tax regime will be abolished from 6 April 2025.
· From 1 April 2024, the VAT registration and de-registration levels will be increased to £90,000 and £88,000 respectively.
· The non-domicile rules will be replaced with a new regime based on residence from April 2025.
· Multiple dwelling relief within the stamp duty land tax (SDLT) regime for England and Northern Ireland will be abolished from 1 June 2024.
· Alcohol and fuel duties are frozen.
If you have any questions about the Budget’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please contact us to discuss them.