The chancellor, Jeremy Hunt, delivered his budget for 2024. Here are the main points outlined by the chancellor to MPs as part of what is expected to be the final budget before the election:
- National insurance (NI) contributions for employees are being cut by 2p in the pound, from 10% to 8% from April. Self-employed NI rates will also drop by 2p from 8p to 6p.
- The threshold on the High-Income Child Benefit Charge, which hits payments if one parent earns above £50,000 a year, is to move to a household-based system from April 2026. The threshold will rise to £60,000 from April, with the top of the taper at which it is withdrawn raising to £80,000.
- Non-dom tax status is to be abolished. It means foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gains. In 2025 a residency-based system will arrive.
- Energy Profits Levy – the windfall tax on UK-produced oil and gas is extended to 2029.
- Higher rate of property Capital Gains tax reduced from 28% to 24%.
- Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is abolished.
- Furnished Holiday Lettings regime abolished.
- Air Passenger Duty raised for non-economy class plane passengers.
- Duty to be introduced on vaping liquids for the first time in October 2026. A one-off increase in tobacco duty will be made at the same time.
- Eligible film studios in England will secure 40% relief on their gross business rates until 2034. Tax reliefs made permanent at 45% for touring and orchestral productions and 40% for non-touring productions.
- A new British ISA will allow an additional £5,000 annual investment for investments in UK equity. This will be on top of the existing ISA allowances.
- To help people save, a new British Savings Bond delivered through NSNI, will offer a guaranteed rate which will be fixed for 3 years.
- Full Expensing for businesses will apply to leased assets in the future. A draft Bill to be published shortly.
- No change to fuel duty, with 5p cut announced in March 2022 still in place.
- Alcohol duty freeze extended until February 2025.
Contact us if you’d like to discuss any of the above and how it impacts you and your business.
