Today the Chancellor delivered his Spring Budget, most of which had already been announced in the Press. Below is a summary of some of the main points of interest, but the full statement can be found here.
National Insurance Cuts
Following on from the previous cuts in January, and to further level up the tax system for workers, Employee National Insurance Contributions will reduce from 10% to 8% from April. The self employed will also see a similar cut from 8% to 6%.
VAT
Having been frozen for a long time now, the VAT registration threshold will increase from £85,000 to £90,000 from April.
Child Benefit Charge
From April 2024, the high income child benefit charge will now start at £60,000 (instead of £50,000), and the rate at which it’s charged will halve, with the full taper now only taking effect at £80,000 (instead of £60,000). Longer term, the charge is to be moved to be based on household income from April 2026.
Property Taxes
In a bid to free up more housing, the beneficial reliefs currently available for holiday lets will be abolished from April 2025. And to encourage more landlords to sell their properties, the higher rate of property Capital Gains Tax will be reduced from 28% to 24%.
ISA’s
A new British ISA, will allow an additional £5,000 allowance for investment in British equities.
