The Chancellor, Jeremy Hunt, delivered his Budget this afternoon, promising lower taxes and a Budget for long term growth.
The tax changes include:
Personal taxes
- National Insurance: rate reductions from April 2024
- Employee: reduced from 10% to 8%
- Self-employed: reduced from 9% to 6%
- Non-UK domicile regime:
- Current regime to be abolished
- Concept of domicile to be abolished
- New residence-based system from April 2025 – for new arrivals, no UK taxes on overseas income or gains for first four years of residence
- High Income Child Benefit Charge
- Income threshold to be increased to £60,000 from April 2024
- Consultation to follow on moving the charge to a household based system
- Personal wealth management: New British ISA – an additional £5k annual allowance to invest in UK equities
Property taxes
- Capital Gains Tax on residential property: higher rate reduced from 28% to 24%
- Abolition of the furnished holiday lettings regime
- Stamp Duty Land Tax: abolition of the multiple dwellings relief
Creative industries
- New tax credit for UK independent films with a budget of less than £15m
- Higher tax reliefs for touring and orchestral productions and non-touring productions to be made permanent at 45% and 40% respectively
- Audio-visual tax credit increased by 5% and cap removed
- Museums and Galleries Exhibition Tax sunset clause to be removed
Other
- VAT: registration threshold to be increased to £90,000 (from £85,000) from 1 April 2024
- Capital allowances: full expensing to be extended to leased assets
- Alcohol duty freeze extended to February 2025
- Fuel duty frozen and 5p cut retained for a further 12 months
- Introduction of an excise duty on vaping products from 2026
Further details will follow in our full summary. Please contact Katharine Arthur or Mark Pattenden if you have any queries.
