Spring Budget 2024 – a roundup for personal finances

In what could be his last Budget, the Chancellor of the Exchequer asserted his plans to ‘grow the economy’.  The key announcements affecting personal finances are:

• National Insurance (NI) reduction means 2p will be cut off the Class 1 rate of NI contributions for employees, with the rate falling from 10% to 8%. Rates for the self-employed will also fall by another 2p down to 6%. The change takes effect from April 2024 
  
  
• ‘British ISA’ launch with an additional annual allowance of £5,000 the new British ISA is designed to encourage increased investment in UK companies. At this stage, it’s unknown when this will be brought into effect
  
  
• ‘Non-dom’ tax regime to be replaced and broadly applies to UK residents whose permanent home is overseas, will be replaced in April 2025
  
  
• Multiple Dwellings relief (MDR) removal from June 2024, is a bulk purchase relief from stamp duty land tax regime
  
  
• High-income child-benefit (HIBC) threshold raised in the immediate term from £50,000 to £60,000 from April 2024. There is a longer-term plan to move to a household-based system by April 2026
  
  
• Cut to higher rate of capital gains tax (CGT) on residential property from 28% to 24% from April 2024. The basic rate of CGT on residential property will remain at 18%
  
  
• Furnished holiday lets (FHLs) abolished to rebalance the tax treatment of holiday rentals compared to long-term lets
  
  

If you have questions about how these announcements could affect your money, it’s easy to arrange a free coaching session with a qualified financial planner, with no ongoing commitment.

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