Spring Budget 2024

In the Spring Budget 2024, Chancellor Jeremy Hunt made several key announcements that could have significant implications for individuals and businesses across the UK. Here’s a breakdown of the main points and what they might mean for you.

Taxation Changes

  • National Insurance Cut: A notable change is the 2p cut in the pound for National Insurance contributions for employees and the self-employed. This aims to ease the tax burden on workers.
  • Non-Dom Tax Regime: The budget also outlines plans to replace the non-dom tax regime from April 2025, introducing new rules for UK residents whose permanent home is overseas. There will be a two year transition period with more details set to be announced soon
  • New “British” ISA: A new £5,000 UK ISA allowance is introduced for savers investing in “UK-focused” shares, pending a consultation.
  • Furnished Holiday Letting Scheme Abolished: The government will abolish the Furnished Holiday Lettings 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. This will take effect from April 2025
  • Capital Gains Tax Rate Cut: This measure reduces the higher rate of CGT on residential property gains from 28% to 24%. The lower rate will remain at 18%

Benefits and Support

  • Child Benefit Thresholds: The budget increases the threshold for full child benefits to households where the highest-earning parent earns up to £60,000, up from £50,000, and the taper will extend up to £80,000. This will come into effect from 6th April 2024.
  • Cost of Living Support: The government will continue its fund to assist those struggling with the cost of living for another six months.

Health and Lifestyle

  • Vaping Tax: A new tax on vaping products will be introduced from October 2026, linked to nicotine levels, although vaping is set to remain cheaper than smoking due to a simultaneous increase in tobacco duty.
  • Alcohol Duty: The budget extends the freeze on alcohol duty until February 2025.

Transport and Energy

  • Fuel Duty: The 5p cut in fuel duty on petrol and diesel will continue for another year, easing the pressure on motorists.
  • Energy Sector: The “windfall” tax on energy firm profits is extended until 2029, and significant investment is planned in green energy projects and nuclear energy sites.


  • Multiple Dwelling Relief: MDR is being abolished, effective 1st June 2024, due to not meeting original objectives set out.

Economic Outlook

  • Growth and Inflation: The Office for Budget Responsibility forecasts modest growth for the UK economy over the next few years, with inflation expected to fall below the 2% target by the end of June.
  • Public Debt: Public debt is projected to rise slightly as a percentage of GDP, with overall government spending growing by 1% in real terms over the next five years.

Business and Investment

  • VAT Threshold: Small businesses will see the VAT registration threshold raised from £85,000 to £90,000 from April, potentially easing the administrative burden on small enterprises.
  • Business Support: The Covid-era government loan scheme for small businesses is extended until March 2026, and tax reliefs for touring and orchestral productions are made permanent.

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