Close

March 8, 2024

Spring Budget 2024

Recently, the Spring Budget was announced by the Chancellor of the Exchequer, Jeremy Hunt. It has arrived amid a period of economic uncertainty, and proposed changes that may affect you.

We have summarised the key points below:

With an election looming, this year’s Spring budget was as much about headline-grabbing tax cuts as it was economic policy. We have therefore summarised some of the key points below.

The UK ISA

  • It is proposed that an additional ISA with a £5,000 annual allowance, will be created – referred to as the UK ISA. This will be in addition to the current £20,000 annual allowance.
  • The government is going to consult on the details of this between now and June, so we will keep you posted.

British savings bonds

  • National Savings & Investments will launch a fixed, three-year savings product in April 2024.

National Insurance

  • As expected, the main rate of employee national insurance is to be cut by 2p from 10% to 8% with effect from 6th April 2024. This will result in savings of up to a maximum of £754 per year.
  • A similar cut was announced for the main rate of self-employed national insurance. From 6th April 2024, class 4 national insurance contributions will be reduced from 9% to 6%.

Capital gains tax on residential property

  • The capital gains tax surcharge on residential property sales has been reduced for higher rate tax payers, and remains unchanged for basic rate tax years. This means the CGT rates for residential property sales from April 2024 will be 18% and 24% respectively.

High Income Child Benefit Charge (HICBC)

  • With effect from 6th April 2024, the income threshold at which HICBC starts will increase from £50,000 pa to £60,000 pa.
  • Instead of the benefit payable being reduced by 1% for every £100 of annual income above the threshold, it will be reduced by 1% of every £200 of annual income above £60,000 pa.
  • This means the threshold above which no child benefit will be payable, will increase to £80,00 pa.

Should you any specific queries with regard to the Spring Budget, or should you wish to discuss any of your own Financial Planning needs at this time, please don’t hesitate to get in touch.

March 8, 2024