The Spring Budget, delivered by Jeremy Hunt this week, included several key measures that will affect you and your business. 

Headlines include:

1. Tax on Savings and Dividend Income:

   • Savings and dividend allowances set at £1,000 and £500, respectively.

   • Reduction in the dividend allowance from £1,000 to £500 in 2024/25.

2. High-Income Child Benefit Charge (HICBC):

   • Thresholds for HICBC increased with a slower rate of clawback.

   • Plans to administer HICBC based on total household income by April 2026.

3. Employment Taxes:

   • Reduction in Class 1 National Insurance Contributions (NICs) rates to 8%.

4. National Insurance for the Self-Employed:

   • Reduction in Class 4 NICs from 9% to 6% in 2024/25.

   • Abolishment of Class 2 NICs.

5. VAT:

   • VAT registration and deregistration thresholds increased by £5,000 to £90,000 and £88,000 from April 1, 2024.

6. Corporate Taxes:

   • Corporation tax rates and thresholds remain at 25% main rate and 19% small profits rate until March 2026.

7. Annual Tax on Enveloped Dwellings (ATED):

   • ATED rates to increase from April 1, 2024.

8. Business Tax:

   • £1 million Annual Investment Allowance (AIA) for qualifying equipment purchases.

9. Capital Gains Tax:

   • Reduction in the annual exemption to £3,000 for 2024/25.

   • Changes in rates for residential property gains.

10. Tax Regime for Furnished Holiday Lets:

    • Abolishment of FHLs and their beneficial tax treatment from April 6, 2025.

11. UK Residency and Domicile:

    • Abolishment of the remittance basis of taxation from April 6, 2025.

The budget was aimed at restoring confidence, in light of a necessary general election before January 2025.

For any advice or guidance on the imminent changes or for support planning for those changes in 2025, please get in touch with our award winning team.