Spring Budget 2024: Initial Reaction
Steve Wren and Kieron Clement-Smith share their quickfire summary of today’s much anticipated Spring Budget. The Chancellor, Jeremy Hunt, announced a raft of significant reforms and tax cuts, including the abolishment of the ‘non-dom’ regime, a further 2% national insurance cut and a reduction in the CGT rate for property disposals.
Jeremy Hunt rose to the dispatch box today for his most significant Budget speech to date. Is there still time for a November statement before the next general election? Who knows, but expectations were high, albeit that in the days leading up to the speech the Chancellor and the Prime Minister were keen to downplay the “great election giveaway”. Whilst some big-ticket items were divulged or hinted at in advance, there was much to digest.
The key takeaways include:
- National Insurance main rates will be reduced by 2% (from 10% to 8% for employees, and from 8% to 6% for the self-employed) from April 2024. No change to employer rates.
- The rate of Capital Gains Tax on residential property disposals will reduce from 28% to 24% from April 2024.
- The non-dom regime will be abolished from April 2025 and replaced with a (4 year) residency-based system, with certain transitional rules in place until April 2027. In addition, a consultation on a residency-based system for Inheritance tax.
- Multiple Dwellings Relief for Stamp Duty Land Tax will be abolished for completed sales from 1 June 2024 (unless exchange was on or before 6 March).
- Certain Creative Industry Tax Reliefs were expanded, and others introduced (relevant for those involved in film, TV, theatre and orchestras).
- The VAT registration threshold (unchanged for 7 years) will rise from £85,000 to £90,000 from April 2024.
We’ll share a more in-depth analysis of the announcements tomorrow.
Whilst some big-ticket items were divulged or hinted at in advance, there was much to digest today
Steve Wren | Partner