Spring Budget 2024: Key Takeaways for Business Owners

07 March 2024

The Spring Budget, delivered on March 6th, 2024, brought a mix of news for businesses. Here’s a breakdown of the key points you need to know:

Tax Cuts:

  • National Insurance (NI) Reduction: Both employees and self-employed individuals will benefit from a decrease in NI contributions. The main rate of Class 1 NIC drops from 10% to 8%, while the Class 4 NIC for self-employed individuals falls from 8% to 6%. These changes take effect from April 6th, 2024.
  • Capital Gains Tax (CGT) Cut: The higher rate of CGT on residential property sales sees a reduction from 28% to 24%, effective April 6th, 2024.
  • Increased VAT Threshold: Businesses with a turnover below £90,000 will be exempt from registering for VAT, providing some administrative relief. This increase comes into effect on April 1st, 2024.

Other Changes:

  • High-Income Child Benefit Charge (HICBC) Reform: The threshold for HICBC increases to £60,000, and the charge rate is halved. This means that child benefit will not be fully withdrawn until an individual’s income reaches £80,000.
  • New ISA Allowance: A new UK individual savings account (ISA) will create an additional £5,000 allowance on top of the current £20,000 ISA limit.
  • Furnished Holiday Letting Reform: The furnished holiday letting tax regime is abolished from April 6th, 2025.
  • Stamp Duty Land Tax (SDLT) Update: Multiple dwelling relief within the SDLT regime for England and Northern Ireland is abolished from June 1st, 2024. Confirmation regarding Wales is still pending.

Note: This article summarises the key points and is not an exhaustive list.

Want to hear more?

For a deeper dive into the Spring Budget and its implications for your business, watch our video featuring Ed Gooderham, partner at Green & Co Accountants and Tax Advisors. Ed provides a clear and concise overview of the key changes.

Click the link below to watch the video:

Stay informed, take action!

  • Download our comprehensive Spring Budget Summary in PDF format: Spring Budget Summary 2024
  • Get in touch with our team of experts to discuss how these changes might affect your business and explore potential strategies.

We’re here to help you navigate the ever-changing economic landscape and make informed decisions for your business success. Contact us to discuss your business needs.

Author
Ed Gooderham FCA,Director
Spring Budget 2024 Key Takeaways for Business Owners

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