Here are the key points from the Government's budget delivered on 6th March 2024 that effect business owners and property investors.
Our chancellor Jeremy Hunt has delivered the 2024 Budget with the aim of steering the UK back to long growth. This comes on the backdrop of less gloomy OBR forecasts and with inflation expected to fall below 2% within a few months.
Small Businesses
£200m of funding will be provided to the growth guarantee scheme.
The vat registration threshold increases to £90,000 from the start of April 2024.
Full expensing on leased assets will be introduced. This will allow businesses to offset investment in items like machinery and IT equipment against tax.
The Economy
Business confidence seems to be returning. The chancellor expects the UK to grow by 0.8% in 2024 and 1.9% in 2025..
Property
He will abolish the furnished holiday letting scheme. This tax break used to make it more profitable for second home owners to let out their properties on short term rentals rather than long term.
The higher rate of capital gains tax is to be reduced from 28% to 24%.
Stamp duty relief for people buying more than one property is being abolished.
Savings
A new 'British ISA' has been announced, which allows an extra £5,000 tax free allowance for investments into UK equities. This is to encourage investment into UK assets.
National Insurance
As part of his aim to simplify income tax, employee national insurance will be cut from 10% to 8%. Self employed national insurance will be reduced from 8% to 6%.
This will help to keep more people in work due to the annual saving of £350.
Child Benefit
The income threshold has been increased from £50,000 to £60,000. Up to this point you are entitled to the full child benefit. Then for every additional £200 earned, you pay back 1% of child benefit through your self assessment tax return.
Hence, you can earn up to £80,000 before you repay it all back.
Other Measures
The Alcohol Duty freeze has been extended until February 2025.
There will be no increase in fuel duty to help drivers, which will save the average car driver £50 per year.
If you would like to know more about how this effects your business, please contact your team member directly or email enquiries@Charterwells.co.uk.