Spring Budget 2024

Written By Olivia Hawkins

More National Insurance cuts, a new 'British' Isa and a change to child benefit were announced by the Chancellor in this years Spring budget - Here’s a round up of key points included in the speech

Taxation

  • National Insurance for employees - dropping from 10% to 8%, this is following a 2% cut in January.

  • National Insurance for the self-employed - Class 4 National Insurance dropping from 8% to 6%.

  • Class 2 National Insurance (£3.45 per week) being completely abolished.

  • Non-dom tax regime, for UK residents whose permanent home is overseas, to be replaced with new rules from April 2025

  • £5,000 UK ISA tax allowance for savers investing in "UK-focused" shares - to be set up following a consultation

Business & Investment

  • Threshold at which small businesses must register to pay VAT raised from £85,000 to £90,000 from April

  • Covid-era government loan scheme for small businesses extended until March 2026

  • Tax reliefs for touring and orchestral productions, which had to been due to end in March 2025, made permanent

Benefits & Income Support

  • Full child benefits to be paid to households where highest-earning parent earns up to £60,000 - the current limit is £50,000

  • Partial child benefit to be paid where highest earner earns up to £80,000

  • Longer repayment period for people on benefits taking out emergency budgeting loans from the government

  • Government fund for people struggling with cost of living pressures to continue for another six months

  • £90 admin fee to obtain a debt relief order scrapped

Cigarettes, Vapes & Alcohol

  • Freeze on alcohol duty, which had been due to end in August, to continue until February 2025

  • New tax on vaping products from October 2026, linked to the levels of nicotine

  • Tobacco duty to go up £2.00 per 100 cigarettes at same time, to ensure vaping remains cheaper

Transport & Energy

  • Fuel duty frozen again, with the 5p cut in fuel duty on petrol and diesel, due to end later this month, kept for another year

  • "Windfall" tax on the profits of energy firms, which had been scheduled to end in March 2028, extended until 2029

  • Air passenger duty, the tax paid on flights, to go up for business class tickets

  • £160m deal for UK government to purchase site of planned Wylfa nuclear site in north Wales

  • A further £120m for a government fund that invests in green energy projects

Housing

  • Higher rate of tax paid on profits from selling property cut from 28% to 24%

  • Tax breaks for owners of holiday let properties scrapped

  • Stamp duty tax break when purchasing multiple properties in England or Northern Ireland to end in June

 
Olivia Hawkins
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