Spring Budget 2024 Summary

Most tax rates and allowances were announced in advance at the Autumn Statement, however there were a few new proposals which were not predicted.

Below are the key points which include measures that were announced previously but are about to come into force.

  • The main personal tax-free allowance (£12,570) remains frozen at the present level until the end of 2027/28, representing a tax rise where income increases
  • The higher rate threshold (£50,270) is also frozen until 2027/28 and the  additional rate threshold remains £125,140 for 2024/25.These thresholds apply to all taxpayers for savings and dividend income. On non savings income, the rates and thresholds are different in Scotland and these only apply to rest of UK taxpayers
  • Tax-free dividend allowance falls from £1,000 to £500, and the savings allowance remains unchanged at £1,000 for basic rate taxpayers and £500 for higher rate for 2024/25
  • CGT annual exempt amount falls from £6,000 to £3,000, for 2024/25
  • ISA investment limit remains £20,000 – a new ‘British ISA’ to encourage investment in British companies, with a £5,000 annual limit, will be introduced after consultation
  • Further reductions in National Insurance Contributions in addition to those announced in the Autumn Statement: from 6 April 2024, Employees’ Class 1 NIC reduced from 10% (was 12% up to 5 January 2024) to 8%, and Class 4 NIC rate for the self-employed cut from 9% to 6% (a cut to 8% was announced in the Autumn Statement)
  • The income threshold above which Child Benefit is clawed back by the High Income Child Benefit Charge (HICBC) will rise from £50,000 to £60,000 in 2024/25, and the clawback will be spread over £20,000 of income (instead of £10,000 up to now)
  • The higher rate of CGT payable on disposals of residential property will fall from 28% to 24% for disposals from 6 April 2024
  • Stamp Duty Land Tax Multiple Dwellings Relief to be abolished from 1 June 2024 (this does not currently apply to LBTT)
  • IHT thresholds and rates unchanged to the end of 2027/28

  • No significant changes to corporation tax or capital allowances
  • Extensions to the tax reliefs available to creative industries
  • Increase in the VAT registration turnover threshold from £85,000 to £90,000 from 1 April 2024
  • Recovery Loan Scheme renamed as Growth Guarantee Scheme and extended to support small and medium enterprises (SMEs)

  • The beneficial treatment of short-term Furnished Holiday Lettings as a trade for tax purposes will be abolished from 6 April 2025
  • The advantageous treatment of non-UK domiciled individuals (‘non-doms’) will be abolished from 6 April 2025, and will be replaced by a residence-based system with transitional rules for those affected
  • The HICBC will be assessed on the combined income of a household from 6 April 2026
  • ‘Full expensing’ tax relief for company purchases of capital assets will be extended to leased assets when fiscal conditions allow, following a consultation

  • Fuel duty frozen, and temporary 5p reduction retained, for another year
  • HMRC given more money to collect outstanding tax debts, budgeted to raise approximately £1 billion every year from 2025/26 to 2028/29

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