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News, commentary & events from balfour+manson 

Spring Budget 2024

Our tax manager, Jim McMahon, summarises the Chancellor of the Exchequer’s Spring Budget. 

The Chancellor of the Exchequer has delivered his Spring Budget to Parliament, and whilst not everything the Chancellor announced applies in Scotland due to devolved taxation, many of the measures will.

The Spring Budget 2024 aims to halve inflation, reduce debt and grow the economy and the key points arising in the Budget Statement affecting various taxes are:

  • A reduction in the rate of Class 1 primary (employees) National Insurance contributions (NICs) from 10% to 8% from 6 April 2024.
  • A reduction in the rate of Class 4 (self-employed) NICs from 8% to 6% from 6 April 2024.
  • The high income child benefit charge (HICBC) threshold to be increased from £50k to £60k, with the level at which child benefit is fully repaid increased to £80k, from the 2024–25 tax year onwards. HICBC will also be assessed on a household-basis rather than an individual basis by April 2026, following consultation.
  • The higher rate of capital gains tax on residential property gains will be cut from 28% to 24% from 6 April 2024.
  • The 5p per litre cut and freeze on fuel duty will remain until March 2025.
  • Alcohol duty will continue to be frozen until 1 February 2025.
  • The furnished holiday lettings tax regime, which provides tax advantages for short-term furnished holiday properties, will be abolished from April 2025.
  • The VAT registration threshold to be increased from £85,000 to £90,000 and the deregistration threshold increased from £83,000 to £88,000 from 1 April 2024.
  • The non-UK domiciled (‘non-dom’) tax regime will be abolished and replaced from 6 April 2025 by a new regime under which new arrivals will not pay UK tax on foreign income and gains for the first four years of residence only, before paying tax in the normal way.
  • The temporary increases in the rates of tax relief for orchestras, museums, galleries, and theatres tax will be made permanent at a rate of 45% tax relief for touring productions, and 40% relief for non-touring productions, from 1 April 2025.
  • A new 53% tax credit for independent British films with a budget of less than £15m will be available via the audio-visual expenditure credit (AVEC), for films commencing photography from 1 April 2024.
  • The sunset clause on the energy profits levy will be extended by one year to 31 March 2029.
  • An excise duty on vapes will be introduced from 1 October 2026, alongside an increase in tobacco duties from the same date.