Following the Government’s Budget announcement on 6th March 2024. We believe the following points of information will be of most relevance to our clients:
· National Insurance is reducing by 2%, from April, for both the employed and self-employed on earnings in the basic rate band.
· High Income Child Benefit Charge. The threshold to be affected by this has increased to £60,000 with the clawback now tapering over the next £20,000. (Previously the threshold was £50,000 with a £10,000 taper.)
· Capital Gains Tax. The higher rate on property disposals is decreasing from 28% to 24%.
· VAT. The compulsory registration threshold will be increasing, in April, from £85,000 to £90,000 of taxable income over the previous 12 months.
· Furnished Holiday Lets are losing their tax breaks on capital gains and business asset disposal relief. They will now be treated similarly to other property income.
· Stamp duty relief when buying multiple properties has now been scrapped.
· Non-domiciled tax status has now been scrapped.
We will notify you of details in due course.
There were further announcements in the Budget, but we do not expect them to affect our clients directly.
