Yesterday, Jeremy Hunt gave his budget speech (i.e. tax changes to the upcoming tax year 2024/25).

 

Key highlights are:

 

Taxation

 

• • National Insurance rates reduced from 10% to 8% for employees and reduced from 9% to 6% for self-employed people

• • The salary thresholds at which people start paying income tax and national insurance remain frozen – meaning people will pay more tax as their incomes rise

• • £5,000 UK ISA tax allowance for savers investing in “UK-focused” shares

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

 

Child Benefit

 

• • 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 

• • Further changes to this charge are on the horizon with HMRC being given the power to look at total household incomes so that this regime could in future apply to the total household income rather than on an individual basis

 

Housing

 

• • Higher rate capital gains tax on profits from selling property reduced 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

 

Business and investment

 

• • Threshold at which small businesses must register to pay VAT raised from £85,000 to £90,000 from April 2024 (ending a 7 year freeze)

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

 

Transport and 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

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