Individuals:

• Employee National Insurance contributions (NICs) will be cut from 10% to 8% from April 2024 and self-employed Class 4 NICs will be reduced to 6%. The Government is doubling up on its Autumn Statement changes hoping, no doubt, that this will have greater impact.
• The high-income child benefit charge (HICBC) threshold to be increased from £50k to £60k, with the level at which child benefit is fully repaid increased to £80k, from the 2024–25 tax year onwards. HICBC will also be assessed on a household-basis rather than an individual basis by April 2026, following consultation.
• Individuals who dispose of a residential property which isn’t their main residence currently pay tax on any gain at 28%. From 6 April 2024, this rate is to be reduced to 24%, meaning that it may be better to defer taxable sales.
• A new ‘UK ISA’ which will have its own £5,000 annual allowance is coming, but no indication of when – only that the details will be consulted upon.
• Alcohol duty will now remain frozen until February 2025. In addition, fuel duty will be frozen for another year until March 2025. In contrast, the Chancellor announced the introduction of a duty on vaping products in October 2026, and a one-off increase in tobacco duty at the same time. The alcohol duty stamps scheme is to close.

• The furnished holiday lettings rules are to be abolished from April 2025. As this regime gives tax breaks to landlords who let out property on a short-term basis, its abolition must be intended to encourage lettings to longer-term tenants. This is a major change for holiday letting businesses.
• Rooted in the same intention to free up properties, the stamp duty land tax multiple dwellings relief is to be abolished for transactions with an effective date on or after 1 June 2024 (subject to transitional provisions).

Businesses:

• For small businesses it was announced that the VAT registration threshold is to increase from £85,000 to £90,000 from 1 April 2024; businesses may feel that this relatively small increase is not sufficient to compensate for the fact that this will be the first increase in seven years.

Other:

• The Non-UK domiciled (‘non-dom’) tax regime will be abolished and replaced from 6 April 2025 by a new regime, under which new arrivals will not pay UK tax on foreign income and gains for the first four years of residence (only), before paying tax in the normal way.

We endeavor to always provide you with the latest updates and deliver our expert knowledge, so contact us today to discuss any questions or queries you may have on the Spring Budget release.