March 6, 2024
Spring Budget Highlights: April 2024
The summary of the key announcements from the Budget are summarised below.
Tax Cuts:
- National Insurance sees a reduction of 2p.
- Fuel duty and alcohol duty remain unchanged.
- Child benefit threshold raised to £60,000.
- Introduction of tax relief for savers through the ‘British ISA’.
- Businesses receive additional relief measures.
National Insurance Reduction:
- Employees’ National Insurance cut by 2p, extending to self-employed individuals.
Fuel Duty Freeze:
- Freeze on fuel duty continued, maintaining the 5p reduction for another year.
Extended Alcohol Duty Freeze:
- Alcohol duty freeze extended until February 2025, in a boost to drinkers.
Enhanced Child Benefits:
- Threshold for child benefit entitlement increased to £60,000.
- Partial child benefit available for earners up to £80,000.
Introduction of ‘British ISA’:
- Introduction of a £5,000 tax allowance for individual savers investing in UK-listed companies.
Support for Businesses:
- VAT registration threshold raised from £85,000 to £90,000.
- Tax reliefs for touring and orchestral productions made permanent.
- Extension of government loan scheme for small businesses until March 2026.
Tax rises:
- Replacement of the non-dom tax regime with new rules.
- Duties imposed on vapes and tobacco from October 2026.
- Increased tax on business class airfares.
- Removal of tax perks for holiday lets.
Non-dom Tax Reforms:
- Non-dom tax regime replaced, effective April 2025.
Duties on Vapes and Tobacco:
- New tax on vaping products effective from October 2026.
- Existing tobacco tax increased to promote vaping over smoking.
Increased Tax on Business Class Airfares:
- Rise in air passenger duty for business class tickets.
Removal of Tax Perks for Holiday Lets:
- Scrapping of tax breaks for holiday let owners.
This budget overview provides insights into the key fiscal policies and changes affecting individuals and businesses alike.
