The Chancellor used the 2024 Spring Budget to announce some wide-ranging reforms with a couple of tax cuts and new relief across a range of different taxes.
Our highlights of the announcements include:
The Chancellor's Spring Budget 2024 announced changes to Agricultural Property Relief (APR) and the scope of IHT.
The VAT threshold is set to rise by £5,000 from 1 April 2024. This is the first rise in seven years. The deregistration threshold rises too. HMRC also receives new enquiry powers following the digitalisation of the VAT DIY Housebuilders scheme.
The Chancellor has made some major changes to several land and property taxes, announcing a reduction in the rate of Capital Gains Tax on gains on the disposal of residential property, together with the abolition of both the Furnished Holidays Letting regime and Multiple Dwellings Relief for Stamp Duty Land Tax.
Spring Budget 2024 introduced a new allowance for a UK-focused ISA, increased the High-Income Child Benefit Charge threshold, added a new bond, made changes to Gift Aid and the Transfer of Assets Abroad rules.
The Chancellor has announced the publication of draft legislation on the extension of Full Expensing to leased assets. Creative industry reliefs were announced including an enhanced credit for UK independent film, additional relief for visual effects and permanent rates of relief for Theatre, Orchestra, Museum and Galleries Exhibition Tax Relief.
The Chancellor announced a 4% reduction in the higher rate of Capital Gains Tax (CGT) on residential property gains, decreasing from 28% to 24% for disposals on or after 6 April 2024.
The Chancellor has announced that the remittance basis will be abolished from 6 April 2025. It will be replaced with a residence-based regime. A similar regime will also be applied for Inheritance Tax purposes.
The Chancellor's Spring Budget 2024 announced a 2% cut in the main rates of National Insurance for both employees and the self-employed from 6 April 2024.
HMRC has announced consultations for the tax avoidance market and the practical implementation of common reporting for cryptoassets. It has also announced the outcome of a consultation into business rates avoidance and the impact for England.
