In his Spring Budget delivered earlier today, Chancellor Jeremy Hunt announced several tax-related proposals which are summarised below:
Capital Gains Tax – higher rate of CGT on residential property sales reduced from 28% to 24% from 6 April 2024
Child Benefit – High Income Child Benefit Charge starting threshold raised to £60,000 from 6 April 2024 with tapering applied up to £80,000. Tax charge to be based on household income, from 6 April 2026
National Insurance Contributions (Employees) – Class 1 NIC main rate reduced from 10% to 8% from 6 April 2024
National Insurance Contributions (Self employed) – Class 4 NIC main rate reduced from 8% to 6% from 6 April 2024
VAT – registration threshold raised to £90,000 from £85,000 from 1 April 2024
Non-UK Domicile status – abolished from 6 April 2025, to be replaced by a residence-based system: new arrivals in UK not taxed on foreign income/gains for first four years of UK tax residence
Furnished Holiday Lettings regime – abolished from 6 April 2025
Stamp Duty Land Tax – Multiple Dwellings Relief abolished from 1 June 2024
Individual Savings Account – new UK ISA with additional £5,000 allowance
Agricultural Property Relief – Inheritance Tax relief (APR and Woodlands Relief) restricted to UK qualifying property only from 6 April 2024
Should you require further information on how these changes might impact upon you or your business, please contact our Tax Team who will be happy to advise: GMcG Tax & VAT Solutions
Our more detailed Budget Analysis publication will be available from 7 March HERE
