Notable changes include the increase in the VAT registration threshold and cuts in National Insurance contributions. Tax-raising measures, such as abolishing multiple dwellings relief and restructuring the non-domicile regime, were also introduced to balance tax giveaways.
But what will it mean for you?
I am self-employed
With the main rates of Class 4 National Insurance Contributions (NICs) being cut by 3% in total in 2024/25 and Class 2 NICs being all but removed, self-employed individuals stand to retain more of what they earn in the year ahead. Some will also benefit from an increase in the VAT registration threshold.
Read from page 7 of our Spring Budget summary to find out more.
I am a property landlord
Capital gains tax on residential property disposals has been cut from 6 April 2024, potentially saving tax for those looking to sell all or part of their portfolios. Looking further ahead, the special tax treatment of furnished holiday lets will however come to an end in April 2025.
Read from page 10 of our Spring Budget summary to find out more.
I have investment and/or pensions income
With tax cuts focused on workers’ National Insurance, investors and pensioners do not stand to benefit. Income tax rates and thresholds remain frozen at their 2023/24 levels, although the ‘high-income child benefit charge’ will apply to fewer individuals in 2024/25.
Read from page 3 of our Spring Budget summary to find out more.
I am a company director and shareholder
With main rates of Class 1 National Insurance Contributions (NICs) being cut by an additional 2% in 2024/25, employees and directors should retain more of any salary paid by the company. With tax rates on dividends remaining static and the dividend allowance reducing, it is important to consider the most tax-efficient profit extraction strategy for the year ahead.
Read from page 4 of our Spring Budget summary to find out more.
What about my company?
Corporation tax rates and thresholds remain frozen at their 2023 levels. For many companies the changes to the research and development tax regime are a key point to watch.
Read from page 8 of our Spring Budget summary to find out more.
My situation is different…
The UK tax rules are wide-reaching and affect individuals and entities in different ways. The above are just some simple examples. Please download our Spring Budget summary below for all of the key Budget headlines and our commentary about how the announcements may affect you, your family and your business.
If you would like more detailed, one-to-one advice on any of the issues raised in the Chancellor's speech, please contact your usual UHY adviser, or get in touch using our contact form.
