Personal Tax

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Tax Cuts for Workers

The Chancellor aims to ease the tax burden on British workers by implementing a 2% reduction in national insurance for both employees and self-employed individuals from April 2024.

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Replacement of Non-Dom Tax System

The non-dom tax system will be replaced with a new system from April 2025.

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High-Income Child Benefit Charge Threshold Increase

• The child benefit threshold has been raised to £60K from April, with being fully repayable once income exceeds £80K.
• A consultation will be undertaken with a view to the child benefit charge being assessed on a household basis from April 2026.

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Introduction of a new UK ISA

• The budget proposes the introduction of Great British ISAs, a new type of tax-free savings account.
• These ISAs would provide an additional £5,000 tax-free allowance for savings invested in shares in British firms.

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Property

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Capital Gains Tax (CGT) Reduction on Residential Property Sales

The higher rate of CGT on property sales has been reduced from 28% to 24%.

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Abolition of Furnished Holiday Let Tax Regime

The furnished holiday let tax regime will be abolished from April 2025.

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Abolition of Multiple Dwellings Relief

Multiple dwellings relief will be abolished starting from June 2024.

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Business Tax

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Capital Allowances Full Expensing for Leased Assets

• The Spring Budget also announced an extension of capital allowances full expensesing. These allowances will be extended to leased assets “when fiscal conditions allow.”.
• This move aims to provide businesses with greater flexibility and support investment in assets.

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VAT Registration Threshold Increase

The VAT registration threshold will be increased from £85,000 to £90,000 starting from April 2024.

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Other Announcements

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Fuel Duty Cut and Freeze

The 5p cut and freeze to fuel duty will be maintained until March 2025.

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Windfall Tax on Oil and Gas Producers

The windfall tax on the profits of oil and gas producers will be extended until 2029, with the aim of raising £1.5 billion in tax.

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Introduction of Duty on Vapes

Starting from October 2026, a duty will be imposed on vapes.

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Alcohol Duty Freeze

The alcohol duty will remain frozen until February 2025.

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Air Passenger Duty

A single one-off adjustment to the air passenger duty for non-economy flights to account for high inflation. For Economy on domestic and short-haul flights, the duty will remain frozen.

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Creative Industries Reliefs

• Companies involved in audio-visual production will benefit from a 5% increase in tax relief.
• Film studios will receive a substantial 40% relief on their business rates.
• The National Theatre receives a substantial boost with £26 million in funding.

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