A lot of changes were announced in #SpringBudget2024, some of which have now become law.
Changes in Stamp Duty Land Tax, Capital Gains Tax and others may be worth keeping an eye on.
Read on to find out more…
The Finance (No. 2) Act 2024 was debated, approved, and granted Royal Assent in a last-minute push before the parliamentary session ended. This urgent passage was necessary as Prime Minister Rishi Sunak called for a general election on 4 July. The act includes important financial measures for the upcoming fiscal year.
Key Provisions of the Act
National Insurance Contributions (NICs)
The significant tax change for the year includes a second 2% cut in National Insurance contributions. This will have an impact on individuals’ take-home pay and overall tax liability.
Stamp Duty Land tax
As of 1 June 2024, the multiple dwellings relief for transactions will be abolished. This change will impact property transactions involving multiple dwellings and should be considered in future planning.
Capital Gains Tax (CGT)
The capital gains tax (CGT) rate for residential property gains has been adjusted, with the higher rate decreasing from 28% to 24% starting from 6 April 2024. The lower rate of 18% still applies to gains within the basic rate band. This change aims to provide relief for property owners.
Anti Avoidance Measures
The transfer of assets abroad provisions have been updated to prevent individuals from using companies to transfer assets offshore to evade taxes, effective from 6 April 2024. It is important to comply with these changes.
High income Child benefit Charge (HICBC)
As of the current tax year, the threshold for the High Income Child Benefit Charge (HICBC) has been raised from £50,000 to £60,000. The charge is calculated at 1% of the full child benefit for every £100 of adjusted net income between £60,000 and £80,000, with individuals earning over £80,000 being subject to the full charge.
Economic Crime Levy
The levy for UK businesses with over £1 billion in revenue will double from £250,000 to £500,000 per year, effective as of the 2024-25 tax year. This change will impact very large corporations in the UK.
For any further guidance in relation to the above don’t hesitate to contact us.
