2024 Spring Budget Summary

The long-awaited Spring Budget unfolded yesterday, unveiled by Chancellor Jeremy Hunt. The 2024 budget strategically addresses the pressing inflation and debt issues while fostering economic growth. The introduction of lower taxes sparks optimism for the citizens of the UK, as the budget simultaneously endeavours to enhance public services. Given the widespread impact of inflation, any relief in this regard is undoubtedly welcomed.

Below we have summarised details of the Chancellor’s Budget presentation, highlighting the key changes and revealing the anticipated benefits.

  • From 1 April 2024, the VAT registration threshold will see an increase of £5,00, from £85,000 to £90,000. The deregistration threshold will be increased from £83,000 to £88,000.
  • From 6 April 2024, there will be a 2p cut to National Insurance:

Class 1 primary (employees) National Insurance contributions (NICs) reduced from 10% to 8%.

Class 4 (self-employed) NICs reduced from 8% to 6%.

  • From 6 April 2024, capital gains tax on residential property gains will be cut from 28% to 24%.
  • From 1 June 2024, transactions on stamp duty land tax multiple dwellings relief will be abolished.
  • A ‘British ISA,’ seeing an extra £5,000 of tax-free investment allowance, will be created, to be put on top of current allowances. This aims to encourage the public to invest in the UK.
  • From 1 April 2024, independent British films will see a new 53% tax credit with a budget of less than £15m, available via the audio-visual expenditure credit (AVEC), for films commencing photography.
  • The high-income child benefit charge (HICBC) threshold will be increased from £50k to £60k. The level at which child benefit is fully repaid will be increased to £80k. HICBC will now be assessed on the household rather than individuals as of April 2026.
  • The fuel duty cut and freeze, set at 5p pet litre, will stay until March 2025.
  • Alcohol duty will stay frozen until 1 February 2025.
  • As of April 2025, the furnished holiday lettings tax regime will be eliminated. Effecting tax advantages for short-term furnished holiday properties.
  • From 1 April 25, tax relief rates for orchestras, museums, galleries, and theatres tax will be made permanent at a rate of 45% for touring productions, and 40% relief for non-touring productions.
  • From 6 April 2025, the non-UK domiciled (‘non-dom’) tax regime will end and be replaced with a new regime. The updated regime will mean new arrivals will not have to pay UK tax on foreign income and gains for the first four years of residence (only), after this they will pay tax in the normal way.
  • Gross business rates for eligible film studios in England, will have 40% relief until 2034.
  • The sunset clause on the energy profit levy has been extended to 31 March 2029.
  • As of 1 October 2026, excise duty on vapes will be introduced and there will be a further increase on tobacco duties.

For more details of the Spring Budget, you can access the Chancellor’s speech through the link provided below.

In full: Chancellor Jeremy Hunt’s full spring budget statement | Politics News | Sky News