March 2024 Newsletter | Cylchlythyr Misol Mawrth 2024
BUDGET SPECIAL
1) INDIVIDUALS
Inflation is expected to fall to 2% by end of June (increasing the pressure on Bank of England to reduce interest rates this year).
For employees, Class 1 National Insurance rate will be cut from 10% to 8% from 6 April 2024, with the Class 4 NIC rate for the self-employed reducing from 8% to 6%. This is expected to lead to a saving of c.£450 per individual.
For parents who receive Child Benefit:
- Threshold at which you start to repay child benefit increasing from £50,000 to £60,000 from April 2024.
- The upper limit on full repayment of child benefit increasing from £60,000 to £80,000.
- Government to consult on moving to a system based on household rather than individual incomes by April 2026 (but not confirmed).
Fuel duty frozen again, with alcohol duty also frozen until February 2025. Further rises in tobacco duty and a new tax to be implemented on vaping products from October 2026.
Abolition of non-domiciled tax status replacing it with a residence-based regime.
2) BUSINESS
VAT registration threshold to increase from £85,000 to £90,000 from 1 April 2024.
For companies, full expensing against corporation tax may be extended to leased assets "when fiscal conditions allow" - this may be some years away.
3) PROPERTY
Abolition of 'Furnished Holiday Letting' tax rules from 6 April 2025. These properties will be treated for tax purposes in exactly the same way as tenanted properties. This is likely to have a significant impact on both the profitability of many holiday lets and on the tax reliefs available when properties are sold (full details yet to be published). Please contact us for a capital gains tax estimate, if you are contemplating selling a property.
Higher rate of capital gains tax from the sale of residential property to reduce from 28% to 24% from 6 April 2024 (lower rate to remain at 18%).
4) INVESTMENTS
New UK ISA to be launched "to invest in UK-focused assets", with a separate £5,000 allowance on top of the current £20,000 ISA allowance.
A British Savings Bond also to be launched in April 2024 via NS&I offering a guaranteed interest rate, fixed for three years.
We will continue to keep you updated on significant tax changes and Government announcements!
