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Parliament Announcements Broken Down - 07-03-2024 - - 0 comments
The Spring Budget

The Spring Budget was void of huge surprises, but we have summarised the key points for Small Businesses below so you have a short summary specific changes that may effect you:

Additional cuts to National Insurance

The Chancellor has announced further cuts to National Insurance (NI).

From 6th April, the main rate of Class 4 self-employed NI contributions reduces to 6%. This reflects an additional cut of 2% announced today on top of the 1% cut announced in the Autumn Statement.

The Class 1 employee's NI contributions main rate will also be cut by 2% from 10% to 8% from 6th April. 

VAT registration threshold rises

The VAT registration threshold will rise from £85,000 to £90,000 from 1st April 2024. 

The VAT de-registration threshold is also being increased, to £88,000, from 1st April 2024. This means that if Vatable sales fall below that level, your clients can de-register. This threshold is currently set at £83,000.

Furnished Holiday Lettings regime scrapped

The Furnished Holiday Lets (FHL) regime, which offered certain tax advantages to people who let out property as a holiday home rather than as a long-term let, is to be abolished in April 2025. 

This means that short-term and long-term lets will be treated the same for tax purposes. 

Higher rate of Capital Gains Tax on property reduced

The higher rate of Capital Gains Tax on residential properties will be cut from 28% to 24% from 6th April 2024. The lower rate will remain at 18%. 

New ISA introduced and overall ISA allowance increased

A new UK ISA will be launched to offer UK investment opportunities for savers. The UK ISA will have a tax-free allowance of £5,000, in addition to the existing ISA allowance. This increases the tax-free investment allowance from £20,000 to £25,000. 

High Income Child Benefit Charge threshold increased

Welcome news for most parents: the threshold for HICBC will go up from £50,000 to £60,000 from 6th April 2024. The taper range - the level above which child benefit must be fully repaid - will increase from £60,000 to £80,000.

The above list a brief summary and by no means exhaustive, if you would like bespoke advice to your personal circumstances get in touch today and book a discovery call with Andrew on 07419733270.

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