The Spring Budget 2024

06/03/2024

The Spring Budget 2024

The Chancellor, Jeremy Hunt has unveiled the government's tax and spending plans in the House of Commons today.

NATIONAL INSURANCE

Mr Hunt has confirmed that the main employee National Insurance will be cut by 2p from 10% to 8% from 6th April 2024. Combined with the 2p cut announced at Autumn Statement 2023, this will save the average worker on £35,400 over £900 a year.

The government is also cutting a further 2p from the main rate of self-employed National Insurance on top of the 1p cut announced at Autumn Statement 2023. This means that from 6 April 2024 the main rate of Class 4 NICs for the self-employed will now be reduced from 9% to 6%. Combined with the abolition of the requirement to pay Class 2, this will save an average self-employed person on £28,000 around £650 a year.

INDIVIDUAL SAVING ACCOUNTS (ISAs)

The government will bring in a new UK Individual Savings Account (ISA) which allows an additional £5,000 investment on top of the £20,000 allowance - to focus only on investing in UK assets.

CAPITAL GAINS TAX (CGT)

From 6 April 2024, the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%. The lower rate will remain at 18% for any gains that fall within an individual's basic rate band. Private Residence Relief will continue to apply, meaning the vast majority of residential property disposals will pay no Capital Gains Tax.

SOCIAL BONUS

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

Overall this is a positive budget for those trying to save efficiently; however as ever, if you want to find out more about any of these or any other policy changes, and how they’d specifically relate to your circumstances, please get in touch with your adviser.