Analysis of the key announcements from the Spring 2024 Budget, provided by John M Taylor & Co., Chartered Accountants and Business Advisors.
The Chancellor's Spring Budget speech yesterday lunchtime set out a number of tax measures aiming to boost business investment and support employment by incentivising work. An analysis of the key announcements is attached for your information, you will also find useful commentaries to help you understand how any relevant changes may affect you personally. Download JMT's analysis here.
Individuals
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Scottish taxpayers will see a new 45% tax rate kick in on (earned) income in the bracket £75,000 to £125,000, increasing to 48% thereafter, as previously announced
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Pension Lifetime Allowance abolished from April 2024 as previously announced
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New - High Income Child Benefit withdrawal threshold increased to £60,000
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New - Employees Class 1 National Insurance cut to 8% from April 2024
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New - Self Employed Class 4 National Insurance cut to 6% from April 2024
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New - Furnished Holiday Lettings Regime to be abolished from April 2025
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New - Capital Gains tax rate on residential property gains reducing to 24% from 6 April 2024
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New - A new UK ISA with an annual investment limit of £5,000 to be introduced for investments into UK assets
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New - Stamp Duty Land Tax - Multiple Dwellings Relief abolished from July 2024 in England (Scotland may follow suit in terms of the same relief within the LBTT regime)
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New - Non-Domiciled tax status to be abolished from April 2025 and a new regime introduced based around residency
* From 6 April 2024 the Scottish income tax system now contains six different tax rates
Businesses
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Corporation Tax - No change, main corporation tax rate remains at 25% and small company rate at 19% (profits up to £50k)
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New - VAT Registration threshold increases to £90,000 and deregistration limit to £88,000 from April 2024
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National Living Wage increasing to £11.44 from 1 April 2024 for those aged over 23, National Minimum Wage rates also increase
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R&D Tax Relief reforms taking effect at 1 April 2024:
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Under the new merged scheme, R&D qualifying expenditure will attract a taxable credit of 20%.
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14.5% payable credit remains for loss-making R&D Intensive companies
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Full expensing (100% tax relief) for companies for (unlimited) expenditure on plant and machinery with consultation on how this could be applied to assets for leasing
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Annual Investment allowance set at £1m per annum on a permanent basis giving all businesses 100% tax relief on capital expenditure
In addition to JMT's Budget Publication, you can also take a look at their recent Spring Newsletter, Year End Tax Planning Guide and Employer Update HERE.