Spring Budget 2024: At a glance

More investment, more jobs, better public services – and lower taxes.

This was a bold promise from a Chancellor and a Conservative government already laying down the groundwork ahead of the upcoming General Election – not yet called, but required to be held, at the latest, by January 2025. Consequently, the Spring Budget, delivered on 6 March 2024, had a lot of announcements on government spending, but also key tax announcements, summarised below.

Individuals

• The main rate of Class 1 employee National Insurance will be reduced from 10% to 8% from 6 April 2024
• The main rate of Class 4 self-employed National Insurance will be reduced from 8% to 6% from 6 April 2024 (with an announcement that it would be reduced from 9% to 8% having already been made in the Autumn Statement 2023)
• From 6 April 2024, the High Income Child Benefit Charge (HICBC) threshold will be increased from £50,000 to £60,000, and it won’t be fully withdrawn until a person’s income is £80,000. From 6 April 2026, the HICBC will be assessed on household income instead of on an individual’s income
• The Furnished Holiday Lettings (FHL) regime will be abolished from 6 April 2025
• Stamp Duty Land Tax (SDLT) multiple dwellings relief will be abolished from 1 June 2024
• From 6 April 2024, the higher rate of capital gains tax on residential property will be reduced from 28% to 24%
• From 6 April 2025, the current tax regime for non-UK domiciled individuals (non-doms) will be abolished and replaced with a new regime with transitional rules applying to those currently benefitting from the remittance basis
• The scope of inheritance tax (IHT) agricultural property relief (APR) and woodlands relief will be restricted to property in the UK from 6 April 2024
• From 6 April 2025, the scope of IHT APR will be extended to land managed under an environmental agreement with, or on behalf of, the government, devolved administrations, public bodies, local authorities, or approved responsible bodies
• Anti-avoidance legislation will be introduced to prevent individuals bypassing the Transfer of Assets Abroad provisions, by using a company to transfer assets offshore, from 6 April 2024
• A ‘UK ISA’ will be introduced giving individuals an extra £5,000 allowance, on top of the existing ISA allowance, to invest in UK companies. The timeframe for the new ISA is being consulted on.

Read more about the announcements for individuals

Businesses

• The VAT registration threshold will be increased from £85,000 to £90,000 from 1 April 2024
• From 1 April 2024 a UK Independent Film Tax Credit will be introduced, enabling eligible films to opt-in to claim enhanced Audio-Visual Expenditure Credit on qualifying expenditure at a rate of 53%
• The rates of Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief will be set at 40% (for non-touring productions) and 45% (for touring productions and all orchestra productions) permanently from 1 April 2025
• Changes will be made to the Audio-Visual Expenditure Credit from 1 April 2025 so that:
  • Visual effects costs will receive a 39% tax credit, and
  • The 80% cap on qualifying expenditure will be removed for visual effects costs.
• The economic crime levy paid by businesses regulated for anti-money laundering purposes, with UK revenue of more than £1 billion, will increase from £250,000 to £500,000 per year for 2024-25 onwards
• The sunset date for claiming tax reliefs for Freeports is being extended to: 30 September 2031 for special tax sites in respect of English Freeports; and 30 September 2034 for special tax sites in respect of Scottish Green Freeports and Welsh Freeports
• ‘Full expensing’ and the 50% first-year allowance for capital expenditure for companies investing in plant and machinery will be extended to leased assets when affordable to do so.

Read more about the announcements for businesses