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Jeremy Hunt Spring Budget Update

By admin
06 Mar 2024

Quick recap in the after math of Jeremy Hunts spring budget

Increase of VAT threshold from 85,000 to 90,000

In the 2022 Autumn Budget, the conservatives announced that the compulsory VAT registration threshold would remain frozen at £85,000, as originally set in April 2017.  Once inflation is factored, this £85,000 limit is now estimated to be £115,000; however, Jeremy Hunt announced today that the threshold would be increased to £90,000 from April 2024.

‘British ISA’ – 5,000 ISA allowance

Individuals can invest £20,000 into a qualifying ISA tax-free, the resulting interest and dividends from this ISA are considered to be tax-free. This allowance is an amount per individual and not per ISA. Today Jeremy Hunt announced the introduction of a ‘British ISA’ which would have an enhanced investment threshold of £25,000. This is to encourage people to invest in Brish based companies, with the goal of peaking British innovation.

Property taxation

The 2024 Spring Budget was a notable year for changes to property taxation with changes affects three large areas of property taxation (Income Tax, Capital Gains Tax and Stamp Duty Land Tax).

  • FHL

There are special rules that apply to the letting of qualifying furnished holiday lets (FHL).  Where the rules apply various reliefs and deductions are allowable which would not be available in respect of the rental of a shorthold residential let property.

Today, Jemery Hunt announced that he would be abolishing the FHL scheme, leaving many to question the impact this will have on VAT and the letting and ownerships of FHL.

  • CGT to 24%

When a higher rate taxpayer makes a gain on the sale of their UK property, they are subject to Capital Gains Tax at a rate of 28%. Jermery Hunt today announced a reduction in this tax rate to 24%, no such reduction has been made to the basic rate taxpayers CGT burden at 18%.

  • Multiple Dwellings

A relief for Stamp Duty Land Tax (‘SDLT’) payable, known as Multiple Dwellings relief, provides a reduced rate of SDLT upon the purchase of multiple ‘linked’ residential properties. Today Jemery Hunt announced the abolishment of this Multiple Dwellings Relief.

Resident Non-dom

UK tax resident individuals are subject to tax on their worldwide income and gains; however, a relief for this exists for non-domiciled individuals. This allows non-domiciled individuals to keep foreign income and gains outside of the scope of UK taxes so long as the funds are not remitted (or brought into) the UK. Today Jemery Hunt announced the upheaval of this scheme.

From April 2025, individuals arriving into the UK will not be subject to UK tax on their foreign income for the first four years of their UK tax residency. If after these four years, the individual is still within the UK, they will be subject to taxes on their worldwide income and gains, removing the “out-dated concept of domicile”.

Child benefit

There currently exists a system where child benefit is due to be repaid if the receiver or there spouse earns above £50,000, this is known as the High income child benefit charge. Where the charge applies, the household’s entitlement to child benefit is reduced by 1% for every £100 of adjusted net income in excess of the £50,000 threshold; therefore, where an individual or their spouse earns above £60,000 the entitlement is adapted to Nil.

Jeremy Hunt today announced that the charge will now apply to earnings over £60,000 with entitlement reduced by 1% for every £200 of adjusted net income, resulting in an upper threshold of £80,000.

In addition, Jeremy Hunt announced that HMRC will soon be developing a system to monitor the income of the household and not just of one individual, with the aim of moving the limits to that of household income. At present two individuals could earn £49,999 each and their entitlement would not be affect, this stands to change this. Although this is not estimated to not come into effect until April 2026.

National Insurance


National Insurance is currently payable on employment income at 10% for individuals with earnings between £1,048 and £4,189 per month, and 2% for individuals with earnings in excess of this. This 10% rate only came into effect on 6 January 2024.

Today Jeremy Hunt announced that the rate of National Insurance will be further reduced by 2% to 8% of earnings with effect from 6 April 2024.


Self-employed individuals are currently required to make Class 4 National Insurance contributions of 9% on earns between £12,570 and £50,270, and 2% for earnings in excess of £50,270. The 9% was set to reduce to 8% from 6 April 2024; however, today Jeremy Hunt announced that this would be slashed to 6% from 6 April 2024.

If you have an questions about anything raised in todays budget the please contact us

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