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Spring budget announcement – Key updates


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Spring budget announcement – Key updates

Following the ‘Budget for Long Term Growth’ announcement on 6 March, several of the predicted outcomes will come to fruition this April.

Harry Marsh
Harry Marsh

Harry Marsh, Senior Director, and Head of our Investment Committee has highlighted some of the key changes taking affect.

Businesses & Investment
From 6 April, the VAT registration threshold will increase from £85,000 to £90,000.
Mr Hunt also announced a consultation around introducing a brand-new British ISA, with a £5,000 tax-free allowance, on top of existing allowances, designed to encourage investment in UK stocks.

The Windfall tax (35% surcharge on profits due to high energy prices) on energy firms’ profits will be extended from March 2028 until March 2029.

From 6 April, employee National Insurance (NI) will reduce from 10% to 8% and the 2 million self-employed will receive a second tax cut with a further 2p reduction from 8% to 6%.

The Non-Domicile taxation status will be abolished and be replaced with a new regime from April 2025. This will remove preferential tax treatment based on domicile status, and these individuals will be able to bring foreign income and gains (FIG) into the UK without any tax charge.

The government will abolish Multiple Dwellings Relief, for those who purchase multiple properties in one transaction.

The higher rate of Property Capital Gains tax will reduce from 28% to 24%. And from April 2024 the high-income Child Benefit charge threshold will be raised from £50,000 to £60,000; Child Benefit will also change to a household-based system from April 2026.

£105m has been allocated over next four years to building 50 new special free schools, creating additional choice for parents.

Alcohol, Tobacco & Fuel
The Alcohol Duty freeze will be extended until February 2025. The current 5p Fuel Duty cut will extend for 12 months. After a review there will be the introduction of a Vape Tax in October 2026, with a one-off adjustment on Tobacco Duty at the same time.

Health & Welfare
£6bn of additional funding will be provided to the NHS, with more than half of this being allocated to improved IT systems. A sum of £45m is to be given to medical charities, including £3m for Cancer Research UK. There will be an increase in the repayment period for emergency loans for those on low incomes, from 12 to 24 months.

Please note that EFG Harris Allday does not provide tax advice and you should seek such advice from your professional advisors as appropriate.