Budget Update
Key points from the Spring Budget include the following:
Personal Tax
· 2% reduction to Primary Class 1 (employees) and Class 4 NIC (self-employed) from 6 April 2024
· Tax rates and thresholds frozen
· An additional annual ISA allowance of £5000 was announced on top of the current £20,000
· Furnished Holiday Letting (FHL) regime to be abolished from April 2025. Income from all UK residential property letting will therefore suffer interest relief restrictions, and Business Asset Disposal Relief won’t be available for CGT
· Higher rate CGT on UK residential property reduced from 28% to 24% from 6 April 2024, in a bid to encourage disposals of second homes and buy-to-let properties
· Remittance basis regime for non-domiciled individuals to be replaced by the “foreign income and gains” (FIG) regime from 1 April 2025. UK residents but non-domiciled individuals opting into the regime will not pay UK tax on foreign income and gains for the first 4 years of UK tax residence. Transitional rules are to be confirmed.
· Threshold for High Income Child Benefit Charge to be raised to £60,000 from 6 April 2024 with plans to make the charge based on household rather than individual income by April 2026
Business Taxes
· No changes to corporation tax rates
· Enhanced credit for certain film productions and high-end TV productions
· No tapering of enhanced tax relief for theatre, orchestra and museums/galleries
· Government considering extending full expensing (ie First Year Allowances) to leased assets.
Tax Administration
· Ongoing consultation regarding regulating the tax advice market with options considered including mandatory professional body membership, having unaffiliated practitioners supervised by HMRC, or an independent regulator. The consultation is open until 29 May 2024. https://www.gov.uk/government/consultations/raising-standards-in-the-tax-advice-market-strengthening-the-regulatory-framework-and-improving-registration/raising-standards-in-the-tax-advice-market-strengthening-the-regulatory-framework-and-improving-registration#executive-summary
Property Taxes
· Abolition of SDLT multiple dwellings relief from 1 June 2024 in England.
Indirect Taxes
· VAT registration threshold to be increased to £90,000 from 1 April 2024
· New excise duty on vaping products from 1 October 2026
· Alcohol duty frozen until 1 February 2025
Inheritance Tax
· The Government intends to move to a new residence-based regime