After the Chancellor's Spring Statement on Wednesday 6th March, we have a comprehensive list of the key points from the announcement. Of course, not every point on here may relevant to your personal finance, but this should serve to be a helpful summary. If you are a client (or prospective client) and have any further questions about what this could mean for you, please contact us.
The Chancellor has cut the main rate of National Insurance contributions (NICs) for employees and the self-employed by 2%. The Chancellor also stated the budget was"for long term growth” and would aim to deliver “more investment, more jobs, better public services and lower taxes.”
KEY POINTS
National Insurance – the main rate of Class 1 employee NICs will decrease from 10% to 8% from April 2024, and the main rate of Class 4 employee NICs will decrease from 8% to 6% from April 2024. This is on top of the 1% cut which comes into effect in April this year, as announced in the 2023 Autumn Statement.
The High Income Child Benefit Charge (HICBC) – in April 2024, the threshold HICHB will increase from £50,000 to £60,000. As well as this, the rate at which this is charged will be halved so that Child Benefit is not taken out in full until one earns £80,000 or more - rather than £60,000.
Capital Gains Tax – the higher rate of Capital Gains Tax for residential property disposals will be reduced from 28% to 24%, starting from April 2024.
Stamp Duty Land Tax – from 1 June 2024, the Government will abolish Multiple Dwellings Relief. This is a tax relief in the Stamp Duty Land Tax regime for people and businesses who are buying multiple properties in one transaction (or multiple linked transactions).
Furnished holiday lettings – from 6 April 2025, the Government will abolish a tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants.
Fuel duty – this will be frozen for another year. Fuel duties have not increased since January 2011.
Alcohol duty – this will be frozen from 1 August 2024 to 1 February 2025. This extends the six-month freeze which was announced in the 2023 Autumn Statement.
Tobacco and vaping duties – a new duty on vaping products will be introduced from October 2026. Tobacco duty will also be increased from October 2026. This is to maintain the current financial incentive to choose vaping over smoking.
VAT threshold – in April 2024, the VAT threshold will be increased from £85,000 to £90,000.
Household Support Fund – this allows local authorities in England to make discretionary payments to people most in need to help towards the rising cost of food, energy, and water bills. It has been extended by six months to September 2024 – it was originally planned to end in March 2024.
The article outlines just some of the details regarding the Spring Statement of 2024. It does not represent financial advice. If you would like personalised financial advice, please contact a financial adviser.