Spring Budget 2024

Our round-up of the 2024 Spring Budget

When preparing for his Budget on 6 March 2024, the Chancellor, Jeremy Hunt, will have had the upcoming election firmly in his mind. Perhaps this is why his speech was less theatrical than some of the recent Budget speeches, and more focussed on delivering a clear message, that message being that the Conservatives have got the economy back on track, allowing a further cut to national insurance contributions.

Given the numerous interruptions requiring intervention from the Deputy Speaker, who seemed to enjoy telling off the boisterous MPs, there were clearly many who disagreed with the Chancellor’s confidence. And based on Labour’s performance in the latest polls, the Conservatives seem to have their work cut out.

Read on for our summary of the key tax measures included in the Budget.

Capital gains tax (CGT) higher rate cut for residential property

From 6 April 2024, the higher rate of CGT for disposals of residential property will be cut from 28% to 24%. The lower rate will remain at 18% for gains that fall within an individual’s basic rate band. Private residence relief will continue to apply.

National insurance contributions (NICs) rates reduced

The main rate of Class 1 employee NICs will reduce from 10% to 8% from 6 April 2024. There will also be a further 2p cut to the main rate of self-employed NICs on top of the 1p cut announced in the Autumn Statement, meaning that from 6 April 2024 the main rate Class 4 NICs will now be reduced from 9% to 6%.

Abolition of furnished holiday lettings (FHL) tax regime

The FHL regime will be abolished with effect from 6 April 2025, in order to eliminate the tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer term tenants.

This follows political pressure from tourist areas such as Cornwall, where second homeowners are blamed for the lack of available housing for local residents.

Non-UK domicile rules replaced with a residence-based regime

For many years, UK resident individuals who have a domicile outside of the UK have been able to benefit from a remittance basis of taxation, under which they are not taxed on non-UK income and gains until they are remitted to (or brought into) the UK.

The remittance basis of taxation will be abolished from 6 April 2025 and replaced with a residence-based regime. Individuals who opt into the new regime will not pay UK tax on any foreign income and gains arising in their first four years of UK tax residence, provided they have been non-tax resident for the last 10 years.

For existing non-doms claiming the remittance basis, the following transitional arrangements will apply:

  • An option to rebase the value of capital assets to 5 April 2019;
  • A temporary 50% exemption for the taxation of foreign income for the first year of the new regime (2025/26); and
  • A two-year Temporary Repatriation Facility to bring previously accrued foreign income and gains into the UK at a 12% rate of tax.

The government is also considering a move to a residence based regime for inheritance tax (IHT) and will consult on this in due course. No changes to IHT will take effect before 6 April 2025.


The government will create an additional Individual Savings Account (ISA) with a £5,000 annual allowance for investment into “UK-focused” shares. This will be in addition to the current £20,000 that can be subscribed into an ISA each year. The government will consult on the details.

Stamp Duty Land Tax (SDLT) – abolition of multiple dwellings relief

From 1 June 2024, multiple dwelling relief for SDLT, which allows lower rates to be applied for bulk purchase of properties, will be abolished. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief, regardless of when they complete, as will any other purchases that are completed before 1 June 2024.

High Income Child Benefit Charge (HICBC) reform

The HICBC threshold will be increased from £50,000 to £60,000 from April 2024. In addition, the rate at which the HICBC is charged will be halved so that Child Benefit is not fully withdrawn until individuals earn £80,000 or more.

It will be welcome news to many that the government plans to administer the HICBC on a household rather than an individual basis by April 2026, thereby removing the current inequity whereby two people in a couple can each earn £50,000 without being subject to the HICBC but a couple where only one person works and earns £100,000 is subject to the charge.

VAT registration threshold increased

The VAT registration threshold will be increased from £85,000 to £90,000 from 1 April 2024, and the deregistration threshold will increase from £83,000 to £88,000 from the same date.