Archive:March 2024

Please find below all the articles from March 2024.

National Insurance contributions (NICs) to be cut

Thursday, March 7, 2024

As expected, Mr Hunt’s main announcement surrounded NICs. In line with prior media reports,
he went even further than the changes he made on NICs in the Autumn Statement last November.

He announced a 2p cut in NICs. From April 6 employee NICS will be cut from 10% to 8%. Meanwhile, self-employed NICS will go from 8% to 6%.

Mr Hunt said: “It means an additional £450 a year for the average employee or £350 for someone self-employed. When combined with the autumn reductions,
it means 27 million employees will…

Non-dom tax breaks to be abolished

Thursday, March 7, 2024

As had been trailed in many of the newspapers in the week leading up to the Budget,
the contentious ‘non-dom’ scheme will be scrapped.

Mirroring what has been one of the higher profile policies of the Labour Party, Mr Hunt said the tax breaks for wealthy foreign residents
in the UK will be abolished and replaced with a new scheme.

So-called non-doms are UK residents but not domiciled here for tax purposes.

Mr Hunt said the Government would “introduce a system which is both fairer and remains competitive with other countries.”

“The…

VAT registration threshold increase

Thursday, March 7, 2024

In a move designed to cut the burden of admin and the financial impact of VAT,
the VAT registration threshold is to increase from £85,000 to £90,000 from April. Although this was not as high as some commentators had hoped,
it is the first increase in 7 years and will bring “tens of thousands of businesses out of paying VAT altogether and encourage many more to invest
and grow”, Mr Hunt told MPs.

Cut to property capital gains tax

Thursday, March 7, 2024

The higher rate of property capital gains tax is to be reduced from 28% to 24%.

The Government said that it had concluded, following a review of costs by the Treasury and the OBR, the change would increase revenues because
there would be more transactions.

However, the lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.

On that point, the official Budget papers stated: “This will encourage landlords and second homeowners to sell their properties, making more
available for a variety of buyers…

New British ISA and British Savings Bonds

Thursday, March 7, 2024

The Government will create a “British ISA” to encourage the public to invest
exclusively in the UK. This will allow people to save an extra £5,000 tax-free per year by investing in UK equity. It will carry “all
the tax advantages of other ISAs”.

This would be in addition to the £20,000 that can be subscribed into an ISA. The government will consult on the details.

Some commentators immediately raised doubts on the merits of the new ISA. They say that geographic diversity is key for having a diversified
portfolio…

Chancellor takes ‘further steps’ on Full Expensing

Thursday, March 7, 2024

In a move he described as a tax cut for businesses, Mr Hunt confirmed the Government will introduce permanent
Full Expensing. He said it was worth £10bn a year for companies.

A capital allowance tax scheme, the move enables businesses to write off 100% of the cost of investment on qualifying items such as new or improved technology, equipment,
machinery or buildings.

Having announced it as a temporary measure in March 2023, the Treasury will shortly publish draft legislation for Full Expensing to apply to leased assets. This will be…

Furnished Holiday Lettings regime scrapped

Thursday, March 7, 2024

Tax breaks for second homeowners letting to holiday makers are to be axed.
The Furnished Holiday Lettings regime is to be disbanded, Mr Hunt revealed. Currently, the tax breaks make it more profitable for second
homeowners to let out their properties to holiday makers rather than to residential tenants to rent, raising concerns over the availability
of long-term rental housing for local people. Multiple Dwellings Relief is also being abolished.

Oil companies windfall tax extended

Thursday, March 7, 2024

The UK’s windfall tax on the profits of oil and gas companies will be extended to 2029.
Officially titled The Energy Profits Levy, it was introduced in 2022 to ensure that oil and gas producers in the UK “pay their fair share of tax from
extraordinary profits”. The Government said the extension was motivated by the forecasts of gas prices to “remain abnormally high until at least 2028-29”.
Mr Hunt told MPs it would raise a further £1.5bn.

Raising child benefit threshold

Thursday, March 7, 2024

The Chancellor revealed the High Income Child Benefit Charge (HICBC) threshold will rise.
Instead of kicking in at £50,000, from April 2024 it will move up to £60,000.

And a consultation is set to get underway on moving the charge to a household-based system in time to start by April 2026.

The Government said there was an unfairness in the current system – the fact it’s charged on an individual basis. The example it gave was
two parents earning £49,000 each (with a household income of £98,000) wouldn’t reach the…

Childcare support expanded

Thursday, March 7, 2024

Further information was set out on plans to extend the 30-hour free childcare offer to all children
of working parents from 9 months. Mr Hunt gave more details today, saying he would be guaranteeing rates paid to childcare providers. The impact of the plans
overall will mean an extra 60,000 parents entering the workforce in the next four years, Mr Hunt said.