The UK’s 2024 Budget includes several noteworthy changes focused on tax modifications, support for businesses, and efforts to stimulate economic growth. Below is a summary of the key announcements:
Personal and Business Taxes:
National Insurance: The main rate of National Insurance for employees will reduce, while employers' contributions will increase by 1.2%, raising funds to address fiscal gaps.
Capital Gains Tax: The top rate for property disposals drops from 28% to 24%, effective April 2024, reducing tax obligations on property sales.
VAT Registration Threshold: This threshold rises from £85,000 to £90,000, which will bring relief to thousands of small businesses starting in April 2024.
Child Benefit: The threshold for the High Income Child Benefit Charge increases to £60,000, softening the impact on middle-income families.
Incentives for Business Growth:
Full Expensing: Permanent full expensing for businesses remains in place, allowing firms to deduct the full cost of eligible investments immediately. This measure aims to encourage investment and growth across the business sector.
Business Rates: Retail, hospitality, and leisure sectors will benefit from a 40% relief on business rates, capped at £110,000 per business, starting in 2025, supporting recovery in these industries.
Non-Dom Tax Regime: The government has abolished the non-dom tax regime in favour of a new residence-based scheme, aligning tax obligations more closely with actual residency
Environmental and Social Measures:
Energy Profits Levy: This levy on oil and gas profits has been extended and increased to 38%, removing investment allowances to ensure higher tax contributions from the sector amid profitability increases.
Support for Low-Income Households: The Household Support Fund will be extended to September 2024 to help with essentials such as food and energy costs.
Inheritance Tax on Pension Pots: Starting in 2027, pension pots will be included in the inheritance tax calculation, aligning them with other assets upon death
Regional Investments and Levelling Up:
The budget dedicates £100 million to cultural projects across regions, £20 million each to 20 towns for community regeneration, and funding boosts for several regions, including North-East England, Wales, and Northern Ireland.
The devolution deals for areas such as Buckinghamshire, Warwickshire, and Surrey aim to grant greater autonomy and encourage localised growth
Support for Green and Technological Innovation:
The budget includes support for renewable energy projects and spaceport initiatives in Shetland and Wales. Furthermore, the UK remains committed to full expensing for electric vehicle infrastructure until 2028, highlighting the government's dedication to green and technological advancements
