Spring Budget 2024

The Chancellor of the Exchequer presented his Spring Budget to the House of Commons on Wednesday 6th March.

  • Corporate Tax: The government will present legislation in the Spring Finance Bill 2024 to establish the Corporation Tax rates for the financial year commencing 1 April 2025. The main rate will be maintained at 25%, while the small profits rate will remain at 19%.
  • Personal Tax : The government will introduce legislation to reduce the main rate of primary Class 1 National Insurance contributions by 2 percentage points from 10% to 8% from 6 April 2024.
  • For the self-employed, the government will introduce legislation to reduce the main rate of Class 4 National Insurance contributions by 2 percentage points, lowering it from 10% to 8% effective from 6 April 2024. This is in addition to the previously announced reduction in the main rate of Class 4 National Insurance contributions from 9% to 8%, and means that from 6 April 2024 the main rate will reduce from 9% to 6%.
  • Guidance on Deductibility of Training: In line with the Autumn Statement 2023 announcement, HMRC has released guidance aimed at offering enhanced clarity regarding the tax deductibility of training expenses for sole traders and the self-employed. This guidance specifies that costs related to updating existing skills, staying abreast of technological advancements, or adapting to changes in industry practices are considered deductible when determining the taxable profits of a business.
  • Class 2 National Insurance contributions — Consultation Commitment: As indicated in the Spring Budget 2024, the government will engage in consultations to finalize the approach for the abolition of Class 2 National Insurance contributions. Following the announcement at the Autumn Statement 2023 to eliminate the requirement to pay Class 2 National Insurance contributions from 6 April 2024, the government remains committed to the complete abolition of Class 2 contributions.
  • UK Individual Savings Account (ISA): As announced at Spring Budget 2024, the government will introduce a new UK ISA with its own allowance of £5,000 a year. The government will consult on the details at a later date.
  • Abolition of the Furnished Holiday Lettings (FHL) tax regime : As outlined in the Spring Budget 2024, the government has committed to abolishing the Furnished Holiday Lettings tax regime to remove the tax advantage for landlords renting out short-term furnished holiday properties relative to those leasing residential properties to long-term tenants. This change is slated to come into effect from April 2025.
  • VAT Registration Threshold: The taxable turnover threshold which determines whether a person must be registered for VAT, will be increased from £85,000 to £90,000. The taxable turnover threshold which determines whether a person may apply for deregistration will be increased from £83,000 to £88,000. These changes will be effective from 1 April 2024. 
  • Fuel Duty main rates: In accordance with the announcement made at the Spring Budget 2024, the government is set to enact legislation through Statutory Instrument to prolong the reduction in Fuel Duty rates, initially introduced at the Spring Statement in March 2022 and extended at the Spring Budget in March 2023, for an additional 12 months. This extension will uphold the reduction in rates for heavy oil (diesel and kerosene), unleaded petrol, and light oil by 5 pence per litre, and the proportional percentage decrease (equivalent to 5 pence per litre from the main Fuel Duty rate of 57.95 pence per litre) in other lower rates and the rates for rebated fuels, where feasible. The changes are scheduled to come into effect from 23 March 2024.
  • The Recovery Loan Scheme for SMEs has been expanded and rebranded as the Growth Guarantee Scheme, aiming to continue offering support to Small and Medium-sized Enterprises (SMEs) in accessing finance. This extended scheme will be operational until the conclusion of March 2026 and will provide a guarantee on loans of up to £2 million in Great Britain and £1 million in Northern Ireland.
  • Capital Gains Tax : Amendments to UK Capital Gains Tax Rate on residential property disposals: The higher rate of Capital Gains Tax for gains from residential property will be reduced from 28% to 24%, effective from 6 April 2024. The lower rate will continue to be set at 18% for gains within an individual’s basic rate band.
  • High Income Child Benefit Charge : The government will implement legislation in the Spring Finance Bill 2024 to raise the High Income Child Benefit Charge (HICBC) adjusted net income starting threshold to £60,000 for the tax year 2024 to 2025. From April 2026, the child benefit tax system will be based on household income rather than individual income. 

For further information on policy paper please visit :

Spring Budget 2024 — Overview of tax legislation and rates (OOTLAR) – GOV.UK (www.gov.uk)

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