2024 Spring Budget

Written By Martin Caruana

The Chancellor is walking a thin line

On 6 March 2024, Chancellor Jeremy Hunt presented his Spring Budget to Parliament. Knowing that the government must hold a general election before 28 January 2025, this budget was designed to restore confidence and win voters. But on the heels of Britain entering a recession and downgraded Office for Budget Responsibility (OBR) forecasts, the Chancellor had his work cut out.

Headlines included:

  • Personal allowance, income tax rates and thresholds remained unchanged in 2024/25

  • Dividend allowance reduces from £1,000 to £500 in 2024/25

  • Further cuts in National Insurance Contributions for workers and the self-employed

  • No change to National Insurance thresholds or limits in 2024/25

  • No change to employer’s Class 1 NIC rates or thresholds in 2024/25

  • A slight increase in the VAT registration threshold, from £85,000 to £90,000

  • An increase in thresholds to reduce the number of people affected by the high-income child benefit charge

  • CGT annual exempt amount reduces from £6,000 to £3,000 in 2024/25

  • A cut in capital gains tax for higher earners disposing of residential property reduced from 28% to 24%

  • Furnished Holiday Lettings regime will be abolished from April 2025

  • No change to IHT limits or rates in 2024/25

  • The limit on how much can be invested into ISAs remains at £20,000 in 2024/25

  • A New UK ISA with an additional £5k per annum limit for investing in UK assets

A summary highlighting the key points that may affect you and your business can be accessed by clicking the button below.

Please contact us for more personalised advice.

The economic forecast

Growth

The economy is expected to grow by 0.8% this year and 1.9% in 2025. That is slightly stronger than the 0.7% and 1.4% growth rate expected by the Office for Budget Responsibility at the time of the autumn statement in November.

Growth is forecast to be 2% in 2026 before dipping to 1.8% and 1.7% in 2027 and 2028.

Inflation

Hunt says inflation is expected to fall below the government’s 2% target in “just a few months’ time,” down from 4% in January.

The Bank of England’s long-term target is to keep inflation at a “low and stable” 2%.

The figure is down sharply from a peak of 11.1% in October 2022, as food and energy prices have eased.

Martin Caruana
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