Spring Budget 2024 summary: What are the key takeaways?

On the 6th March, the Chancellor of the Exchequer, Jeremy Hunt, delivered his Spring Budget for 2024. This speech saw the announcement of some new taxes and adjustments to existing taxes. We also saw changes to several economic policies. In our summary, we look into how this budget might affect you.

Here’s some key takeaways for you:

  • The average worker will save an estimated £450 per year, as the Rate of National Insurance will be cut by 2p for employees and the self-employed.
  • Similarly, for the self-employed, you’ll see a fall in Class 4 contributions from 8% to 6% on profits over £12,570.
  • Where the highest earner earns up to £60,000, households can access full child benefits. Partial child benefits will be paid to households where the highest earner earns up to £80,000. Created following a consultation, for those who invest in “UK-focused” shares, a £5,000 “UK ISA” allowance will be set up.
  • Helping those struggling with the cost-of-living pressure, the Household Support Fund will continue for six months.

And for businesses:

  • Increasing to £90,000 from £85,000, the threshold is changing for small businesses to pay Value Added Tax (VAT).
  • Extending until March 2026, the Recovery Loan Scheme will support access to finance for UK small businesses.

In mortgage/housing news, the chancellor revealed new development projects are designated for development projects in Sheffield, Blackpool, and Liverpool up to £188 million. There will be an additional investment of £242 million in Barking Riverside and Canary Wharf, resulting in the construction of nearly 8,000 homes.

In a move to address issues in the housing market, Hunt is removing the furnished holiday lettings regime. This change aims to increase the availability of long-term rentals.

In response to the reported misuse, Hunt announced the termination of stamp duty relief for individuals purchasing multiple dwellings. There will be a reduction of the higher rate of property capital gains tax (CGT) from 28% to 24%, Hunt saying it could increase transactions and, as a result, government revenue.

This spring budget contains a lot to absorb. Make sure to chat with us to see if we can help you digest this information and how it relates to you.