The Chancellor delivered his Spring Budget speech yesterday. Among the changes announced was the abolition of the furnished holiday lettings regime and the non-dom tax status. These changes will fund a further 2% cut in national insurance and increase the VAT threshold. Reforms to the high income child benefit charge were also announced.
Whilst much of the Budget announcements had been leaked ahead of the Chancellor's speech, the reform of the high-income child benefit charge was a nice surprise for many. The VAT threshold also saw its first increase in seven years, rising from £85,000 to £90,000 from 1 April, a move which should bring tens of thousands of businesses out of paying VAT altogether.
Tax measures
The following tax measures were announced in the Spring Budget:
2% cut to the main rate of employee national insurance (from 10% to 8%)
Self-employed NI cut from 8% to 6%
Abolished multiple dwellings relief on SDLT
Reduced the higher rate of capital gains tax (CGT) on property sales from 28% to 24%
VAT threshold increased to £90,000
Reformed the high-income child benefit charge
Introduced new ISA which allows an additional £5,000 annual investment
Abolished furnished holiday lettings regime
Abolished the non-dom status
Introduced duty on vaping products from October 2026
Frozen fuel duty for another 12 months
Extended the alcohol duty freeze until February 2025
Made tax reliefs for orchestral productions permanent
£1bn in additional tax relief for creative industries over the next five years
Extended the windfall tax on oil and gas.
To discuss any of these changes in further detail please do get in touch with us - katie@bluearrowaccounting.co.uk
