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Spring Budget 2024


Spring Budget 2024

As the seasons change, so too do the financial landscapes, and the Spring Budget of 2024 brings forth a series of noteworthy amendments set to impact businesses and individuals alike.

VAT Thresholds
From 1 April 2024 the taxable turnover threshold to register for VAT will be increased from £85,000 to £90,000. The taxable turnover threshold for deregistration will also be increased from £83,000 to £88,000.

Furnished Holiday Lettings (FHL) regime abolished
From April 2025 the government are going to abolish the FHL tax regime, eliminating the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants. At the moment, landlords who use the furnished holiday lets regime can deduct the full cost of their mortgage interest payments from their rental income, are entitled to capital allowances on the furniture, pay lower capital gains tax (CGT) when they sell, and are entitled to CGT rollover relief etc.

National insurance
The main rate of primary Class 1 National Insurance contributions is going down to 8% from 6 April 2024 and for the self-employed, the main rate of Class 4 National Insurance contributions is going down to 6% from 6 April 2024.

Capital gains tax: reduced annual exemption
The CGT rate for higher-rate taxpayers on gains incurred on the disposal of residential properties will be reduced to 24% from April 2024.

High-Income Child Benefit Charge threshold
The government will introduce legislation in the Spring Finance Bill 2024 to increase the High Income Child Benefit Charge (HICBC) adjusted net income starting threshold to £60,000, from the 2024-25 tax year onwards. It will also amend section 681C to extend the
HICBC taper to between £60,000 and £80,000. For those with income between £60,000 and £80,000, the rate at which HICBC is charged is halved, and will equal 1% for every £200 of income that exceeds £60,000. The charge on taxpayers with income above £80,000 will be equal to the full amount of child benefit paid.