Spring Budget 2024:  Reflection

Published: March 2024

In a classic pre-election Budget, the Chancellor was keen to highlight the benefits of having a Conservative MP, particularly in the marginal seats that will form the key battlegrounds.

As for the announcements themselves, the most notable had been well-flagged in advance, with reductions in National insurance (NI) and the removal of “non-dom” status.  Employees saw a reduction in NI from 10% to 8%, whilst the self-employed will have NI reduced from 8% to 6%, both from April.

Pensions and Investments

For many of our clients, there would have been a keen interest as to whether any further details to the abolishment of the Lifetime Allowance were issued.  However, the Chancellor was very silent on this.  We do expect further information to be issued.

However, what the Chancellor did say was that most pension schemes will need to disclose the extent to which they invest in UK companies, as part of a push to increase domestic investment.

A new UK Individual Savings Account (ISA), with a £5,000 allowance that can be invested in British companies was announced which provides further tax-free opportunity.  This is in addition to the current £20,000 ISA allowance, which is unchanged.  We are sure further details will follow post the consultation closing on 6 June 2024.

Following the January changes to the eligibility criteria of High Net Worth and Sophisticated Investors, the Chancellor has made a reversal on these as previously he had restricted further those who can invest in products such as Enterprise Investment Schemes and Venture Capital Trusts, but this has now been rolled back which again may provide further investment opportunity.

Capital Taxes

For some of our clients, the announcement of the reduction in the top rate of Capital Gains Tax from 28% to 24% on property sales will be welcomed as a gift, but opposing this is the multiple dwellings relief in the Stamp Duty Land Tax regime for England and Northern Ireland, which will be abolished from 1 June 2024.

As is often the case with Budget announcements, there may be other important information tucked away in the detail of the Budget papers – rest assured, if there is, we will find it and let you know.

Contact us

If you would like to talk to one of our Chartered Financial Planners, please contact us on 01223 233331 or email info@mmwealth.co.uk.

Disclaimer

Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments and the income from them can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The Financial Conduct Authority does not regulate estate planning and  tax planning.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing.  Levels, bases and reliefs from taxation may be subject to change.