Dubbing the fiscal statement a ‘Budget for long-term growth”, Hunt focused his speech on delivering tax breaks, boosting investment and tackling unfairness in the UK tax system.
One of the Chancellor’s most significant announcements was a 2p cut to National Insurance contributions (NICs) in April, on top of the 2p he already cut in last year’s Autumn Statement. Workers will see their NIC rates fall by four percentage points in less than six months.
Other personal measures included extending the freeze and 5p cut on fuel duty for a further 12 months, cutting the higher capital gains tax (CGT) rate on residential property sales, and reforming the high income child benefit charge (HICBC) to increase the threshold and make the system fairer for single-earner households.
For businesses, Hunt promised enhanced funding for ‘high-growth industries’ and focused support for the creative sector.
The VAT threshold will also rise from £85,000 to £90,000 in April, reducing the administrative burden for tens of thousands of businesses.
To pay for these changes, the Chancellor announced several revenue-raising initiatives, such as replacing the current tax regime for non-domiciled individuals (non-doms), a new levy on vaping products and an extension of the windfall tax levy on oil and gas companies. Hunt also abolished the furnished holiday lettings relief, claiming this move would raise capital and improve the availability of long-term rental properties.
This report outlines the major announcements in the Chancellor’s speech, breaking down the latest economic forecast from the Office for Budget Responsibility (OBR) and what the changes could mean for businesses and individuals alike.
Here are some main highlights from the budget:
- Freeze in fuel duty for 12 months
- Cheers to a freeze in alcohol duty until February 2025!
- VAT registration threshold climbs to £90K from April 2024. Small businesses, rejoice!
- ISA reform on the horizon, including a new £5K “British ISA”
- Planning to fly non-economy? Air passenger duty is getting a bump from April 2025
- Big changes for property owners: farewell to the Furnished Holiday Lets regime from April 2025, and goodbye multiple dwellings relief from June 2024
- Smoother sailing for sellers: CGT on residential property sales dropping from 28% to 24% from April 2024
- Oil and gas sectors will see windfall taxes extended by one year to 2029
- Replacement of the “non-dom” regime from April 2025
- HICBC to be assessed on a household basis from April 2026
- HICBC thresholds to be raised from April 2024 – £50k threshold increased to £60k and taper to £80k
- Plus, NIC rates are taking a dip for employees and the self-employed alike, putting a bit of money back in your pocket from April 2024 (Class 1 Employee NIC rate reduced from 10% to 8% and Class 4 Self-Employed NIC rate reduced from 8% to 6%)
Curious about what these changes mean for you personally? Drop us a message! We’re here to help you understand and make the most out of these new measures.
