| Main rate of National Insurance cut by 2p |
| From 06 April 2024 the main rate of National Insurance for employees will be reduced by 2p, representing a reduction from 10% to 8%. This change will benefit the average employee by roughly £470 per year. Meanwhile, self-employed National Insurance contributions will be reduced from 8% to 6%, meaning the average self-employed person earning £28,000 a year will save £650 per year. |
| VAT registration threshold increased |
| On 01 April 2024, the minimum threshold for when businesses need to become VAT registered will be increased from £85K to £90K. |
| Business tax cuts |
| The Chancellor shared that full expensing will soon also apply to leased assets. We’ll keep you updated when a date is announced for this change. Furthermore, the post pandemic Recovery Loan Scheme has been granted a further £200M in funding to help up to 11K small businesses get the finance they need. This will be renamed the Growth Guarantee Scheme. |
| New British ISA announced |
| A brand new British ISA will allow savers up to £5K additional annual tax-free investment into UK stocks. This means savers can support UK business and get better returns than a traditional saving account. |
| Capital Gains tax |
| The higher rate of Capital Gains tax on residential property is to be reduced from 28pc to 24pc, this change is designed to encourage the sale of more property. |
| Child benefit entitlement amended |
| Thousands of families will benefit from a change to how eligibility of child benefit is calculated. By April 2026 the assessment will be based on household income rather than individual earnings. In the meantime, from 06 April 2025 the current threshold of when the higher income child benefit charge applies will increase from £50k to £60K. It will not be fully withdrawn until individuals earn £80K or more. |
| Fuel Duty cut |
| Fuel Duty will be frozen for another year, whilst the temporary 5p cut to fuel will be maintained. This will be revisited in 12 months. |
| Furnished Holiday Lettings tax |
| From 06 April 2025 the Furnished Holiday Lettings tax regime will be abolished. This means that short-term and long-term lets will be treated the same for tax purposes. |