Following the Chancellor of the Exchequer’s Spring Budget announcement earlier this week, we have prepared a Spring Budget Guide to help you navigate the latest updates and changes.

Summary of the headline changes resulting from the Spring Budget:
  • National Insurance (NI) – NI has been reduced by 2p from 10% to 8% starting from 6 April 2024, building upon the 2p reduction announced in the autumn statement.
  • Inheritance Tax (IHT) – IHT rates have been maintained at current levels of 40% charged on the part of your estate that’s above the £325,000 threshold.
  • Non-domicile Tax Status – The non-domicile tax status will be abolished and replaced with a new system, effective 6 April 2025.
  • UK Individual Savings Account (ISA) – A £5,000 “British ISA” tax allowance has been introduced for individual savers to invest in UK-listed companies, in addition to the existing £20,000 annual allowance.
  • Value Added Tax (VAT) Threshold – The threshold for small businesses required to register for VAT has been raised from £85,000 to £90,000, effective 1 April  2024.
  • Capital Gains Tax (CGT) – Capital Gains Tax on second property homes will be reduced from 28% to 24% for higher tax rate payers. The lower rate will remain at 18% for basic rate tax payers.
  • Furnished Holiday Lets (FHL) Regime – The FHL regime will be abolished from 6 April 2025.
  • Multiple Dwelling Relief (MDR) – MDR stamp duty relief on multiple house purchases in one transaction will be eliminated from 1st June 2024. Properties exchanged before 6 March 2024, will still be eligible for relief.

You can download our full Spring Budget Guide below. Should you have any questions or require further clarification on any of the points mentioned, please do not hesitate to reach out to us or contact your adviser directly.

To discuss any of the issues raised in this article, please contact us.

Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

The Financial Conduct Authority (FCA) does not regulate tax advice, estate planning, trusts or will writing.

The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice.

Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.

Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

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