Court of Protection

Spring Budget 2024

Today the Chancellor, Jeremy Hunt, presented the Spring Budget.

06 Mar 2024

Team name

The reduction in National Insurance and freezing fuel duty was rumoured before the budget announcement. The headlines are:

National Insurance – cut in Autumn to be followed by a further 2%. From April 6^th 2024 national insurance reduces from 10% to 8% for employed workers and from 8% to 6% for self-employed national insurance contributions.
Income Tax – no changes.
Capital Gains Tax – upper rate reduced from 28% to 24% for property sales – not clear if for all gains, or only sale of property. The details are awaited.
Child Benefit – to consult on moving to household system from 2026 to make fairer and avoid the cliff edge of earning over £50,000 per parent. In the interim the £50,000 threshold will be increased to £60,000 and the top end of taper does not end until parent receives over £80,000 in income.
Property taxation – the furnished holiday letting regime will be abolished to encourage longer term lettings to locals over short term lets.
Stamp Duty – multiple dwellings relief for to be abolished (formerly available when more than one property is purchased in one transactions).
Alcohol duty – frozen for pubs and hospitality in the Autumn statement and is now frozen until February 2025.
Tobacco – to consult on charging duty on vaping. Tobacco duty will rise above the level to be set for vapes.
Fuel duty – continues to be frozen for another twelve months.
Extra £5,000 ISA allowance for investment in British businesses. This is in addition to existing ISA allowances.
Locally, £242m is pledged towards housing building at Barking Riverside and Canary Wharf.
Additional funding for childcare providers to allow free childcare to be implemented, as previously announced.
The non-dom regime will be replaced with a fairer system. From April 2025 no tax on overseas assets for non-doms for the first four years. After four years the tax will be the same as for other UK residents. Transitional arrangements for current non-doms to encourage bringing overseas funds onshore.

M&P Commentary

Samantha Hamilton, head of the Court of Protection department at Mullis & Peake LLP, said:

“There were few surprises in the Budget today, which is likely to be the last Budget statement before the next General Election. Individuals will need to work out whether the National Insurance reduction, along with other measure that may assist them, such as the changes to child benefit and the freezing of fuel duty will make this a positive budget for them.”