Spring Statement 6 March 2024

Main rate of Class 1 NICs to be cut again from 10% to 8% from 6 April 2024.

Class 4 NICs rate will be cut from 9% to 6% from April 2024.

No changes to threshold level or rate of Employer NICs.

Personal Income Tax and National Insurance contributions thresholds, remain fixed at their current rates until April 2028.

National Living Wage to increase from £10.42 an hour for age 21 and over to £11.44 from 1 April 2024.

NMW rates to apply from April 2024:

• 18 to 20 year olds from £7.49 to £8.60 per hour
• 16 to 17 year olds from £5.28 to £6.40 per hour

No changes to the previously notified Dividend Allowance that is to be reduced to £500 from April 2024.

Furnished Holiday Lettings regime abolished from 6 April 2025. Going forwards profits will be taxed in the same way as any other rental property profits.

Capital Gains Tax higher rate on residential property gains reduced from 28% to 24% from 6 April 2024. No change to basic rate, which remains at 18%.

No changes to the previously notified Capital Gains Tax Annual Exempt Amount that is to be reduced to £3,000 from April 2024.

No change to Corporation Tax rates from 1 April 2024:

• 19% for taxable profits below £50,000 (small profits rate)
• 25% for taxable profits above £250,000 (main rate) Marginal Relief available to be tapered between the small profits rate and the main rate.

100% Capital Allowance first year tax relief (in addition to current AIA allowances) for Limited Companies only, now made permanent.

No changes to IHT thresholds or rates. From 1 April 2024 personal representatives of estates will no longer need to have sought commercial loans to pay inheritance tax before applying to obtain a "grant on credit" from HMRC.

No changes to current ISA limits or taxation of savings. However it was announced that a new "UK ISA" with an additional allowance of £5,000 will be introduced, but no start date yet released.

Van and Fuel benefit amounts to remain fixed at 2023/24 rates for 2024/25. HMRC Double cab pick up updated guidance in February 2024 cancelled and remains unchanged for 2024/25.

High Income Benefit Charge threshold raised to £60,000 (was £50,000) from April 2024. The income level at which full claw back of the benefit is achieved, has been raised to £80,000 (from £60,000).

Alcohol duties remain frozen until 1 February 2025. Previous 5p per litre cut in fuel duty will remain in place until March 2025.

Significant changes to "Non-Dom" UK residency and Domicile regime planned for April 2025 onwards.