Budget Summary March 2024

The Chancellor, Jeremy Hunt, delivered the Government’s budget in March. Here at Blue Leaf Accounting, we watched it so you don’t have to.

Here are the main points that might impact our clients:

Household /Investments /Benefits / Pensions

Child benefit will move to “household income” not “individual income” by April 2026. This is helpful where one parent has a large salary but the other has a very low income.

This April, Child Benefit Higher Income Charge level will rise to £60,000. Top taper (the level at which it is withdrawn) raised to £80,000. In other words, full child benefits to be paid to households where highest-earning parent earns up to £60,000

Stamp duty relief for people buying more than one dwelling is being abolished. Known as multiple dwellings relief (MDR), the tax saving will be abolished from 1 June

Capital Gains Tax on properties higher rate reduced from 28% to 24% (for higher rate tax payers) on sale profits of residential property that is not a main residence (your home!)

British ISA with additional £5k allowance for investment in UK stocks

“Non Dom” status (UK residents whose permanent home is overseas) abolished and replaced with residency system. No tax on foreign income for 4 years and then pay UK tax

Businesses

VAT rate threshold increased from £85,000 to £90,000. Therefore, it is not necessary to register for VAT until your expected turnover hits £90k

Furnished holiday lettings regime to be removed to encourage long term rentals rather than letting out to holiday makers

Freeze fuel/alcohol duty for additional 12 months

Business class Air Passenger Duty (APD) to be increased

Full expenses to apply to leased assets in the future (when it can be afforded). The full tax benefit of the asset can be claimed up front while actual cash payments are made monthly. Details to be part of ongoing review

Self Employed tax

Class 4 National Insurance cut to 6% from April. This is on annual profits between £12,570 and £50,270

Employment

Employee National Insurance (paid by employees via PAYE) to reduce by 2% down to 8% from April 2024 (2p in the pound)

In summary, as always, the devil is in the detail, and we at Blue Leaf Accounting are here to help if you have any questions.