Spring Budget Highlights: April 2024

The summary of the key announcements from the Budget are summarised below.

Tax Cuts:

• National Insurance sees a reduction of 2p.
• Fuel duty and alcohol duty remain unchanged.
• Child benefit threshold raised to £60,000.
• Introduction of tax relief for savers through the ‘British ISA’.
• Businesses receive additional relief measures.

National Insurance Reduction:

• Employees’ National Insurance cut by 2p, extending to self-employed individuals.

Fuel Duty Freeze:

• Freeze on fuel duty continued, maintaining the 5p reduction for another year.

Extended Alcohol Duty Freeze:

• Alcohol duty freeze extended until February 2025, in a boost to drinkers.

Enhanced Child Benefits:

• Threshold for child benefit entitlement increased to £60,000.
• Partial child benefit available for earners up to £80,000.

Introduction of ‘British ISA’:

• Introduction of a £5,000 tax allowance for individual savers investing in UK-listed companies.

Support for Businesses:

• VAT registration threshold raised from £85,000 to £90,000.
• Tax reliefs for touring and orchestral productions made permanent.
• Extension of government loan scheme for small businesses until March 2026.

Tax rises:

• Replacement of the non-dom tax regime with new rules.
• Duties imposed on vapes and tobacco from October 2026.
• Increased tax on business class airfares.
• Removal of tax perks for holiday lets.

Non-dom Tax Reforms:

• Non-dom tax regime replaced, effective April 2025.

Duties on Vapes and Tobacco:

• New tax on vaping products effective from October 2026.
• Existing tobacco tax increased to promote vaping over smoking.

Increased Tax on Business Class Airfares:

• Rise in air passenger duty for business class tickets.

Removal of Tax Perks for Holiday Lets:

• Scrapping of tax breaks for holiday let owners.

This budget overview provides insights into the key fiscal policies and changes affecting individuals and businesses alike.