The Chancellor of the Exchequer, Jeremy Hunt has presented his Spring Budget which set out the UK government’s vision to grow the economy.
Key Takeaways:
- National Insurance Contributions cut by 2% for employees and self-employed
- Higher rate capital gains tax (CGT) on residential property sales reduced from 28 to 24%
- VAT registration threshold increased from £85,000 to £90,000
- Abolition of relief on SDLT for multiple dwellings from 2024
- Abolition of furnished holiday lettings relief from 2025
- Abolition of non-doms regime from April 2025 and replaced with a residency-based system with a two-year transition period for current non-doms. (New arrivals will not be required to pay tax on foreign income and gains for their first four years. Those that continue to live in the UK will pay the same tax).
- £1bn in additional tax relief for creative industries over the next five years
- Extension to windfall tax on oil and gas
- Introduction of duty on vaping products from October 2026 plus one-off
- Fuel duty frozen for another 12 months, maintaining the 5p cut
- Extension to alcohol duty freeze until February 2025
- New creative tax reliefs for film studios, VFX, and independent films with current high rates of relief for theatres, orchestras, museums, and galleries made permanent
- Introduction of brand-new ISA which allows an additional £5,000 annual investment
- High-Income Child Benefit Charge threshold raised to £60,000; moving to a household-based system by 2026
Source: gov. uk