Spring Budget 2024

On Wednesday 6th March 2024, Chancellor Jeremy Hunt unveiled the government's latest tax and spending plans in the House of Commons.

Here are the updates relevant to limited companies, sole traders, partnerships and individuals;

• Class 1 National Insurance has been reduced from 10% to 8% from the 24/25 tax year. This is paid by PAYE employees and directors earning over £12,570 per year.

• Class 4 National Insurance has been reduced from 8% to 6% from the 24/25 tax year. This is paid by self-employed sole traders earning over £12,570 per year.

• The threshold at which businesses must register for VAT will be raised from £85,000 to £90,000 from April 2024.

• The Higher Income Child Benefit Charge (HICBC) threshold has been raised from £50,000 to £60,000 per year. The government will consult on reforming HICBC to a household based system by April 2026.

• The higher rate of Capital Gains Tax paid on profits from selling property will be cut from 28% to 24% from April 2024. The basic rate remains unchanged.

• Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is scrapped.

• Abolition of the furnished holiday lettings (FHL) tax regime.

No changes have been announced to the rates of Corporation Tax, Dividend Tax, Employers National Insurance or Income Tax.

Personal tax thresholds remain frozen at £12,570 (basic rate), £50,270 (higher rate) and £125,140 (additional rate) for the 24/25 tax year.