Its that time again and I can hear the yawns from here, so let me be as brief as possible and give you a quick rundown of the key points that were delivered by the chancellor today.
Self Employed
National Insurance contributions (NICS) cut again after the Autumn Statement. From April 2024 class 4 contributions will be cut from the current rate of 8% to 6%
Property
A reduction in the higher rate of property CGT from the current rate of 28% to the new lower rate of 24%.
Stamp duty relief known as Multiple Dwellings Relief, for people who buy more than one property, is to be abolished.
The Furnished Homes Lettings regime is also to be abolished as it was felt to be creating a distortion in the availability of long term rental.
Non-Dom Status
A contentious issue due to the Prime Ministers wife benefiting from this. The current system whereby non-domiciled UK residents didn't have to pay tax on foreign income is to be abolished and replaced with a system whereby new people into the country will benefit from this for the first 4 years and will then pay the same tax as other UK residents.
Savings
A new British ISA has been announced meaning you can pay a further £5,000 into your ISA for investment into UK assets. This brings the tax wrapped ISA to £25,000 per year.
Business
Full expensing of assets introduced in the Autumn statement will be expanded to include leased assets.
VAT threshold will increase from April 2024 to £90,000 up £5,000 from the current threshold of £85,000
Employee National Insurance contributions will be cut from 10% to 8% from April 2024.
The Economy
Inflations is currently at 4% and is expected to reach the governments target of 2% in a few months a full 12 months ahead of the OBR's expectations.
OBR also predicts GDP to grow 0.8% this year and 1.9% in 2025. This is up from 0.7% and 1.4% predicted in November 2023.
Treasury borrowing expected to be 91.7% of GDP in the 24/25 tax year and 92.8% in 25/26, up slightly (91.6% and 92.7%) from predictions in November 2023.
No change on Fuel duty or Alcohol duty, with the latter's freeze expected to last until 2025.
A new tax duty to be introduced on vaping liquids in October 2026 and a one off tobacco duty increase will also happen at the same time.
Household support fund extended for a further 6 months.
Threshold on the High Income Child Benefit Charge will be moved to a household income in 2026 and in the meantime the threshold will be increased to £60,000.
If you need any advice on how these changes might effect you, please get in touch and we will be happy to help.
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