Budget 2024 – key points at a glance
The Budget 2024, as unveiled by Jeremy Hunt, aims for long-term growth, addressing key areas such as inflation, taxation, savings, and public spending. It features significant changes like the abolition of the non-dom tax status, the introduction of a new British ISA, and reductions in property capital gains tax.
The budget anticipates inflation falling below 2%, forecasts modest economic growth, and commits to maintaining public service spending.
Additionally, it includes investments in healthcare, childcare, and green industries, alongside tax relief for businesses and the arts. This budget represents a strategic effort to balance support for families and investment in the UK’s future economic stability.
Here are some of the key points that impact savers, investors, business owners, and those purchasing property.
Non-dom tax status
The UK’s non-dom tax status, which allows certain UK residents with overseas connections to avoid paying UK tax on their global income, will be eliminated in April 2025. This change aims to introduce a more contemporary, streamlined, and equitable system.
After a transition period of four years, individuals arriving in the UK will be subject to the same tax obligations as other UK residents, aligning their financial responsibilities more closely with the broader population.
Related service: Wealth management
National insurance
The national insurance contribution rate will drop from 10% to 8% starting April, following a prior reduction from 12% to 10%. This sequence of cuts, including the most recent 2p reduction, represents a savings of approximately £450 annually for individuals earning a £35,000 salary.
Savings
Jeremy Hunt introduced the British ISA, offering an additional £5,000 tax-free investment allowance to encourage investment in UK assets. Additionally, a new British Savings Bond, backed by National Savings and Investments, will be available from April. This bond features a guaranteed interest rate, fixed for three years, to further promote savings within the country.
Related service: Savings & investments
Property tax
The government plans to decrease the top rate of property capital gains tax from 28% to 24%. Additionally, the benefit of stamp duty relief for purchasing more than one property will be removed, aiming to adjust the tax landscape for property investors.
Holiday lets
The government will eliminate the furnished holiday let tax relief, which currently benefits property owners renting to holidaymakers over long-term tenants. This change is expected to generate £300 million annually for the Treasury.
VAT
From April, the threshold for VAT registration will increase to £90,000 from the current £85,000, offering support to numerous businesses by easing the VAT burden and potentially fostering growth and financial health within the small business sector.
Growth
The UK economy is projected to experience growth, with expectations set at 0.8% for this year and 1.9% in 2025, surpassing previous forecasts. Growth is anticipated to reach 2% in 2026, followed by a slight decline to 1.8% and 1.7% in the subsequent years. This outlook suggests a gradual but positive trajectory for economic expansion.
Child benefit
The child benefit system is set for a rework, aiming to base it on total household income rather than individual income starting April 2026. This adjustment includes raising the income threshold for higher tax charges on the benefit from £50,000 to £60,000, and increasing the taper’s upper limit from £60,000 to £80,000. Additionally, the government has extended the household support fund by six months to further assist families facing cost of living challenges.
Other announcements
The chancellor also made further announcements covering:
- Inflation
- Government borrowing
- Public services
- The NHS
- Vaping tax
- Alcohol and fuel duty
- Windfall tax and energy
- Pharmaceuticals
You can find out more information about the budget in the following articles:
The Guardian: Budget 2024: key points at a glance
