key takeaways from the Spring Budget 2024
The Chancellor announced his Spring Budget on Wednesday 6th March.
Tax cuts and reforms announced aim to create more investment, more jobs, and better services.
Measures covered:
- National Insurance Cuts
- Abolishment of the non-domicile tax status
- A new British ISA
- Changes to property tax reliefs
- …amongst others.
Check below for our full list of key takeaways
Let’s stay informed and engaged!
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Key points from the Spring Budget 2024
- National Insurance Contributions From April 6th Employee NIC will be cut by 2p from 10% to 8%, and for self-employees, NIC will be cut from 8% to 6%.
- Non-domicile tax Non-domicile tax status will be abolished and replaced by a “modern, simpler and fairer” system from April 2025. After four years, those coming to the UK will pay the same tax as other UK residents.
- VAT The threshold at which small businesses must register to pay VAT increases from £85,000 to £90,000 from April 2024.
- Full expensing Plans to allow full expensing to apply to leased assets. Full expensing allows businesses to offset investment in items such as new factory machinery and IT equipment against tax.
- ISAs A new ‘British ISA’ which will provide another £5,000 of annual tax-free investment in UK equities.
- Recovery Loan Scheme Recovery Loan Scheme changes to Growth Guarantee Scheme and support extended to continue to allow SME’s to access funding.
- Creative industries A package of tax reliefs for creative industries is announced, with plans for a new tax credit for independent films.
- Green technology Up to £120 million pledged to build supply chains for new green technologies.
- Windfall tax "Windfall" tax on the profits of energy firms, which had been scheduled to end in March 2028, is extended until 2029
- Stamp Duty Stamp Duty relief will be abolished for those buying more than one dwelling. The higher rate of Capital Gains Tax of 28% for residential properties is reduced to 24%.
- Holiday Lets The furnished holiday lets tax regime will be abolished from April 2025.
- Alcohol and Fuel Duty Freeze on alcohol duty will be extended to February 2025, and a freeze on Fuel Duty is extended for 12 months.
For further guidance
For further guidance on any of the tax measures discussed in the Spring Budget 2024, please contact your usual MHA advisor or Contact Us.
Read the latest Spring Budget commentary from MHA – visit our dedicated hub for resources, advice, and practical guidance on what the new tax measures and reforms could mean for you and your business, to help you prepare for and manage their impact.
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