Spring Budget 2024

Our Tax team shares their reaction to the recently announced Spring Budget delivered by the Chancellor in his plan to help grow the British economy.

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Our Tax team reacts

Chris Riley

“While the reduction in National Insurance last autumn may not have seemed like a tax cut given the freezing of thresholds, todays announcement will genuinely see an overall reduction in tax bill for many employees.”

Chris Riley| Head of Tax

Catherine Heyes

“Multiple dwellings relief, which can reduce the amount of Stamp Duty Land Tax payable if there is more than one dwelling in a purchase, is to be abolished.”

Catherine Heyes | Corporate Tax Partner

Stephen Kenny

“The non-domiciled tax regime is now to be abolished, and will be replaced with a residency based system. Under the new system, people who have not been a resident in the past 10 years will pay no tax on overseas income or gains for the first four years. After that they will be taxed on worldwide income and gains. This is a significant change to the current system for non-doms. The new rules provide a measure of transitional relief for existing UK resident non-domiciled individuals.”

Stephen Kenny | Personal Tax Partner

Mark Ellis

“A welcome increase to the mandatory UK VAT registration threshold from £85,000 to £90,000 with effect from 1 April 2024. The VAT deregistration threshold should increase to £88,000 too on the same date. These thresholds only apply to UK-established businesses.”

Mark Ellis | VAT Partner

Mimi Chan

“A drop in Capital Gains Tax on residential property from 28% to 24% is estimated to drive disposals of second homes and raise further tax revenue.”

Mimi Chan | Corporate Tax Partner

Tom Golding

“As expected, the cuts in NI are being funded by the abolition of the non-domiciled rules. Will these changes really deliver the anticipated £2.7bn of additional income or just make the UK less attractive to wealthy non-domiciled individuals”

Tom Golding | Corporate Tax Partner

“The Furnished holiday letting regime is to be scrapped for Income Tax meaning you will no longer be able to claim capital allowances or full relief on mortgage payments. We wonder if this will also impact the Inheritance Tax position and available Business Property Relief for some furnished holiday lets.”

Phil Clayton | Personal Tax Senior Manager