Chancellor of the Exchequer made his Spring Budget speech and set out the government’s plans to bring forward a series of reforms to ensure the tax system is simple, fair, keeps pace with economic developments, and supports public finances.

Key tax measures announced today are detailed below.

Information on all the measures announced today, including the annual uprating of duties and rates, can be found in the Spring Budget 2024 and in other documents from the Office for Budget Responsibility.

An overview of all the tax legislation and rates announced Spring Budget 2024. A number of these measures help us continue to make progress on the government’s commitment to simplify the tax system. They will also deliver further administrative reforms to make it easier for individuals and sole traders to meet their tax obligations.

The government will bring forward a further set of tax administration and maintenance announcements on 18 April 2024. None of these announcements will require legislation in Spring Finance Bill 2024 or have an impact on the government’s finances at this stage.

Personal Tax

• National Insurance contributions (NICs)– the government has announced a cut to the main rate of Class 1 employee NICs from 10% to 8% from 6 April 2024, and a further cut of 2p to the main rate of Class 4 self-employed NICs from 6 April 2024, taking this to 6%. Alongside these cuts, the government announced that it will consult on Class 2 NICs abolition later this year.
• Tax rules for non-UK domiciled individuals– from 6 April 2025, the current remittance basis of taxation will be abolished for UK resident non-domiciled individuals. This will be replaced from 6 April 2025 with a new 4-year foreign income and gains (FIG) regime for individuals who become a UK tax resident after a period of 10 years of non-UK tax residence.
• High Income Child Benefit Charge (HICBC)– the government has announced it will raise the HICBC income threshold from £50,000 to £60,000 from 6 April 2024, and the taper will be extended up to £80,000. The government intends to move to a system based on household rather than individual income by April 2026, and consult in due course.
• Capital Gains Tax (CGT)– the government will legislate to reduce the higher CGT rate for residential property disposals from 28% to 24%. The change will take effect for disposals that take place on or after 6 April 2024. The lower rate of 18% will remain unchanged.
• Abolition of Furnished Holiday Lettings – the government will repeal the current rules for Furnished Holiday Lettings (FHL) for individuals and corporates from April 2025, and will publish draft legislation in due course.
• UK Individual Saving Account (ISA) – the government has announced that it intends to introduce a UK ISA with a new £5,000 allowance, in addition to the existing ISA allowance, and has launched a consultation on its design and implementation.
• Improving Payment Options for Income Tax Self Assessment (ITSA) – the government will improve and simplify HMRC’s digital services to support Income Tax Self Assessment taxpayers seeking to pay tax in instalments.

Business Tax

• Tax reliefs – the government has announced measures related to tax reliefs which include:
• new permanent rates of relief (40% and 45%) for theatre, orchestra and museums and galleries exhibition tax, and additional support for independent film through a new UK Independent Film Tax Credit at a rate of 53% for films with budgets under £15 million that meet the conditions of a new British Film Institute test. In addition, the government is providing a 5% increase in tax relief for UK visual effects costs in film and high-end TV, under the Audio-Visual Expenditure Credit (AVEC).
• HMRC will establish an expert advisory panel to support the administration of research and development (R&D) tax reliefs.

Excise and Duties

• Value Added Tax (VAT) – the government has announced a number of VAT related measures:

-the VAT threshold will increase to £90,000 from 1 April 2024, and the level at which a business can apply for de-registration will increase from £83,000 up to £88,000.

-following its commitment in Autumn Statement 2023, the government will consult in April 2024 on the VAT implications for the private hire vehicle sector.

• Vaping Duty– the government will introduce a new duty on vaping products in October 2026, and has launched a consultation on the detailed design and implementation of the duty, which will close on 29 May 2024.
• Stamp Duty Land Tax (SDLT) – a range of SDLT measures have been announced, including:
  • First Time Buyers’ Relief will be extended to individuals who use nominee and bare trust arrangements when buying a new lease over a dwelling that they intend to use as their main or only residence.
  • the government has announced the abolition of Multiple Dwellings Relief, a bulk purchase relief within the SDLT rules available on the purchase of two or more dwellings. The government will engage with the agricultural industry to determine if there are any particular impacts for the sector that should be considered further.

Tackling the Tax Gap

• Crypto-Asset Reporting Framework (CARF)– the government has launched a consultation to seek views on how best to implement the Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard.

Agents and intermediaries

• Strengthening the regulatory framework in the tax advice market – the government has published a consultation on two potential changes to raise standards in the tax advice market:
• strengthening the regulatory framework, by exploring a proposal to require tax advisers to join a professional body.
• requiring tax advisers to register with HMRC if they wish to interact with HMRC on a client’s behalf. The government will also explore making it quicker and easier for tax advisers to register with HMRC.