Spring Budget 2024 – 6 March Highlights

Big Ben in Spring

6th March 2024

The Chancellor, Jeremy Hunt, delivered his Budget this afternoon, promising lower taxes and a Budget for long term growth.

The tax changes include:

Personal taxes

  • National Insurance: rate reductions from April 2024
    • Employee: reduced from 10% to 8%
    • Self-employed: reduced from 9% to 6%
  • Non-UK domicile regime:
    • Current regime to be abolished
    • Concept of domicile to be abolished
    • New residence-based system from April 2025 – for new arrivals, no UK taxes on overseas income or gains for first four years of residence
  • High Income Child Benefit Charge
    • Income threshold to be increased to £60,000 from April 2024
    • Consultation to follow on moving the charge to a household based system
  • Personal wealth management: New British ISA – an additional £5k annual allowance to invest in UK equities

Property taxes

  • Capital Gains Tax on residential property: higher rate reduced from 28% to 24%
  • Abolition of the furnished holiday lettings regime
  • Stamp Duty Land Tax: abolition of the multiple dwellings relief

Creative industries

  • New tax credit for UK independent films with a budget of less than £15m
  • Higher tax reliefs for touring and orchestral productions and non-touring productions to be made permanent at 45% and 40% respectively
  • Audio-visual tax credit increased by 5% and cap removed
  • Museums and Galleries Exhibition Tax sunset clause to be removed

Other

  • VAT: registration threshold to be increased to £90,000 (from £85,000) from 1 April 2024
  • Capital allowances: full expensing to be extended to leased assets
  • Alcohol duty freeze extended to February 2025
  • Fuel duty frozen and 5p cut retained for a further 12 months
  • Introduction of an excise duty on vaping products from 2026

Further details will follow in our full summary. Please contact Katharine Arthur or Mark Pattenden if you have any queries.

Katharine Arthur

Partner, Head of Private Client
+44 20 7969 5610
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