Spring Budget 2024 Summary

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As the seasons change, staying informed about financial updates is crucial for businesses. At Grenfell James, we’re dedicated to keeping you in the know. Today, we’re pleased to share a concise summary of the Spring Budget 2024, expertly crafted by our Senior Client Manager, Helen Gill.

Helen’s experience and attention to detail mean you’ll get clear insights into how the Spring Budget impacts you. This summary breaks down complex information from tax changes to financial policies into easy-to-understand points.

Let’s examine Helen’s key takeaways, which will give you the knowledge you need to navigate the financial landscape confidently.

Spring Budget 2024 Highlights

1. Reduction in Class 4 National Insurance Tax Rates for Self-Employed Individuals:

Starting April 6, 2024, self-employed individuals will see a decrease in their Class 4 National Insurance tax rates from 8% to 6% for profits ranging between £12,570 and £50,270.
This translates to lower tax payments to HMRC and tax relief for the 2024/25 tax year.

2. Reduction in Employee National Insurance Rates:

Also effective from April 6, 2024, employed individuals will experience a reduction in their Employee National Insurance rates from 10% to 8%.
This will increase take-home pay, assisting with the current cost-of-living crisis and alleviating double taxation for employees paying PAYE and National Insurance.

3. Increase in High-Income Child Benefit Tax Charge Threshold:

The threshold for the high-income child benefit tax charge will rise to £60,000 from £50,000 on April 6, 2024.
Starting in April 2026, this charge will be reformed to consider household income rather than individual income, benefiting more families and providing additional funds each year.

4. Abolishment of Tax Relief for Furnished Holiday Lets:

As of April 2025, tax relief for furnished holiday lets will be abolished.
This change aims to increase the availability of properties for long-term rents, addressing the housing crisis. However, it will result in higher taxation on this income for individuals on their tax returns.

5. Increase in VAT Registration Threshold:

Beginning April 1, 2024, the VAT registration threshold will rise to £90,000 from £85,000.
This adjustment allows smaller businesses to generate more revenue before VAT becomes compulsory, with the option for voluntary registration for businesses below this threshold.

6. Reduction in Capital Gains Tax Rates on Residential Property for Higher Rate Taxpayers:

Effective April 2024, higher-rate taxpayers will benefit from a reduction in capital gains tax rates on residential properties, which will decrease from 28% to 24%.
This applies to individuals with multiple properties, resulting in lower tax payments upon property sales.

7. Abolishment of Stamp Duty Multiple Dwellings Relief:

From June 2024, stamp duty multiple dwellings relief will be abolished.
This change will increase tax payments when purchasing multiple properties, necessitating budget adjustments for property buyers.

8. Extension of Full Expensing Rules for Capital Allowances:

Limited companies will enjoy further tax relief as full expensing rules for capital allowances, including leased assets, are extended.
The government will determine the start date for this extension, which will provide 100% tax relief on qualifying expenditures and reduce corporation tax liabilities.

We encourage you to explore the Spring Budget 2024 in full for a comprehensive understanding. You can view it on www.gov.uk here.

At Grenfell James, we understand the importance of these changes and their impact on your business. If you’re a small business owner seeking guidance on navigating these developments, our team is here to help. Reach out today to explore how we can simplify and revolutionise your business.