On 6th March 2024, the Chancellor delivered his Budget, probably the last one before the anticipated 2024 General Election. The following is a summary of the main points which affect small businesses (our client base). NB some of the details are still being developed or announced, so not all of the information may be available just yet.
As expected, the main rates of NI were cut. With effect from 6.4.24, this will be 8% for employees and 6% for the self employed (sole traders and partnerships). This follows the NI cuts announced in the Autumn Statement.
NB the rate of employers NI stays the same.
Since it was introduced in 2013, Child Benefit has been repayable if a household has one parent earning over £50,000, and it is all repaybale once earnings reach £60,000. For 2024, these limits have been increased. Child Benefit becomes repayable once earnings reach £60,000 and the upper limit will be £80,000.
The FHL rules treat short-term letting businesses in a similar way to trading businesses for the purposes of various tax reliefs, as longs as availability and occupancy conditions being met. The FHL regime will be abolished from April 2025.
The current CGT rates applicable to gains made on disposals of residential property are 18% and 28%. From 6 April 2024, the higher rate will be cut to 24%.
The VAT registration threshold will increase to £90,000 from 1 April 2024. The deregistration threshold will increase to £88,000.
Further information is available here.
N. Goddard
7.3.24
