Spring Budget 2024 – updates for businesses

Corporation Tax rates

The Government has confirmed that the rates of Corporation Tax will remain unchanged, which means that from April 2024, the rate will stay at 25% for companies with profits over £250,000. The 19% small profits rate will be payable by companies with profits of £50,000 or less. Companies with profits between £50,001 and £250,000 will pay tax at the main rate reduced by a marginal relief, providing a gradual increase in the effective Corporation Tax rate.

Capital allowances

The full expensing rules for companies allow a 100% write off on qualifying expenditure on most plant and machinery (excluding cars) as long as it is unused and not second hand. The rules were originally designed to be effective for expenditure incurred on or after 1 April 2023 but before 1 April 2026. Similar rules apply to integral features and long life assets at a rate of 50%. The Government announced in the Autumn Statement 2023 that both allowances will be made permanent. The Government is to publish draft legislation for consultation to help consider any potential extension to include plant and machinery for leasing. The Annual Investment Allowance (AIA) is available to both incorporated and unincorporated businesses. It gives a 100% write-off on certain types of plant and machinery up to certain financial limits per 12-month period. The limit remains at £1 million.

Research and Development (R&D) relief

As announced in the Autumn Statement 2023, the existing Research and Development Expenditure Credit (RDEC) and SME schemes will be merged, with expenditure incurred in accounting periods beginning on or after 1 April 2024 being claimed in the merged scheme. The rate under the merged scheme will be set at the current RDEC rate of 20%.

The changes also provide additional relief for loss-making R&D intensive SMEs through a higher rate of payable tax credit from April 2023, as a feature of the existing SME scheme. Those entitled to this higher rate would, from April 2024, continue to claim under rules similar to the current SME scheme rather than under the new RDEC scheme.

A number of other changes will apply to the new regime from April 2024, including that R&D claimants will no longer be able to nominate a third-party payee for R&D tax credit payments, subject to limited exceptions. Further action may be needed to reduce the unacceptably high levels of non-compliance with the R&D rules and HMRC will be publishing a compliance action plan.

For more on how the Spring Budget announcements could affect your business, get in touch with Mark Baycroft, Partner, or a member of the Business Tax team.

Impact of NIC cuts following the Spring Budget 2024 – IFA Magazine

The headline change was the Chancellor’s 2% cut in National Insurance Contributions (NICs), although the decision had already garnered significant attention due to prior reports and leaks. Given that there was already a cut announced to NICs in the Autumn Statement 2023, the additional announcement was an interesting move.

According to the Government, building on changes made at the Autumn Statement, it has cut taxes again for 29 million
people, with the average worker on £35,400 receiving a cut in 2024/25 of over £900.

Katharine says: “The further 2p cut to National Insurance will be welcomed as a less expensive alternative to cutting income tax that still offers those in work a meaningful saving. However, Income Tax thresholds remain frozen, reducing the real impact of the national insurance cuts.”

There were also significant changes to the non-domiciled tax regime. Given what’s been announced, the proposed changes would be attractive to individuals looking for a low tax jurisdiction because they will not pay tax on income for their first four years in the UK. However, Katharine notes: “The introduction of a new residence-based relief for new arrivals to the UK from April 2025, with no UK tax on overseas income gains for the first four years, should simplify the regime but significantly reduces the timeframe over which individuals will benefit.”

You can read Katharine’s comments in full via IFA Magazine.

What these changes mean for you

You can read our full summary of the Spring Budget 2024 here. If you would like further advice, contact Katharine or a member of our Private Client team.

Podcast: Spring Budget 2024 reaction

Our summary of the Spring Budget 2024 provides an overview of the key announcements arising from the Chancellor’s speech, and how they are likely to impact your business and personal finances. We take a look at:

  • The impact on private clients and personal finances with Katharine Arthur, Partner and Head of Private Client, and Mark Pattenden, Private Client Partner;
  • How the non-domiciled tax regime will go through significant changes with James Walker, Partner, and Duncan Cleary, Manager; and
  • The welcome tax relief changes for the creative industries with Louise Veragoo, Not for Profit Tax Director, and Alice Palmer, Senior Manager.

Click to listen below. You can also listen on Apple Podcasts, Google Podcasts, and Spotify.

Spring Budget 2024 – 6 March Full Summary

Lowering taxes
The Chancellor made further changes to National Insurance contributions (NICs), following the cuts made in the Autumn Statement 2023. The rates for NICs will be cut further for both employees and the self-employed from 6 April 2024.

There was also a cut in the higher rate of Capital Gains Tax (CGT) on residential property disposals and the creation of a new Individual Savings Accounts (ISA) allowance to encourage investment in promising UK businesses.

The Chancellor has responded to pressure from business groups by raising the threshold for VAT registration to £90,000 and announcing his intention to extend full expensing to leased assets.

Making it possible
The Chancellor made his cuts possible with a series of tax-raising measures. These included a new regime for non-doms, the abolition of the furnished holiday lettings (FHL) tax regime and Multiple Dwellings Relief for Stamp Duty Land Tax (SDLT), alongside a new duty on vaping and an increase in tobacco duty.

Our summary of the Spring Budget 2024 provides an overview of the key announcements arising from the Chancellor’s speech, and how they are likely to impact your business and personal finances.

Please get in touch with your usual haysmacintyre contact or any member of the Tax team, if you have any queries.

Download the summary below.

Spring Budget 2024 – 6 March Highlights

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


  • 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.

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