UK Spring Budget 2024

Dear Clients,

We are pleased to provide you with a comprehensive summary of the key updates from the UK Spring Budget 2024. This summary aims to simplify complex tax changes and ensure you are well-informed about how these updates may impact you or your business.

Personal Tax Updates

1. National Insurance Contributions (NICs):

  • – Reduction in main rates of Class 1 employee and Class 4 self-employed NICs.
  • – Consultation on Class 2 NICs abolition.

2. Tax Rules for Non-UK Domiciled Individuals:   

  • – Abolition of remittance basis of taxation for UK resident non-domiciled individuals.   
  • – Introduction of a new 4-year foreign income and gains (FIG) regime.   
  • – Increase in High Income Child Benefit Charge (HICBC) income threshold.  

3. Capital Gains Tax (CGT):   

  • – Reduction in higher CGT rate for residential property disposals.   
  • – Repeal of Furnished Holiday Lettings (FHL) regime.  

4. Other Updates:   

  • – Introduction of a new UK Individual Saving Account (ISA) with a £5,000 allowance.   
  • – Improvements in Payment Options for Income Tax Self-Assessment (ITSA).  

Business Tax Updates

1. Tax Reliefs:   

  • – Permanent rates of relief for theatre, orchestra, museums, and galleries.
  • – Additional support for independent film through a new UK Independent Film Tax Credit.
  • – Increased tax relief for UK visual effects costs in film and high-end TV.  

2. Excise and Duties:   

  • – Increase in VAT threshold.   
  • – Introduction of a new duty on vaping products.   
  • – Abolition of Multiple Dwellings Relief for SDLT.

Tackling the Tax Gap

1. Cryptoasset Reporting Framework (CARF):   

  • – Consultation launched on implementing the CARF and Amendments to the Common Reporting Standard.

Agents and Intermediaries

1. Strengthening Regulatory Framework:   

  • – Consultation on potential changes to raise standards in the tax advice market.  

We hope this summary of the UK Spring Budget 2024 updates has been helpful in understanding the recent tax changes. Should you have any questions or require further clarification on how these updates may affect your personal or business finances, please do not hesitate to reach out to us. Our team at SandMartin is here to assist you every step of the way.