The Chancellor delivered his Spring statement for 2024 yesterday on Wednesday March 6th. Here are our key takeaways.
Our Key Takeaways from the Spring Statement:
National Insurance
- A further cut of 2% to the main rate of National Insurance (NI) from 10% to 8%.
- This is following the previous 2% cut announced in the Autumn statement.
- The lower NI rate will give employees a maximum saving of £754 pa.
Child Benefit
- The threshold at which child benefit is withdrawn will increase from £50,000 to £60,000.
- Child benefit will not be completely withdrawn until individuals make £80,000 or more.
- Individual pension contributions can reduce income for the purposes of this test.
Individual Saving accounts
- A new ‘UK ISA’ is to be introduced to support UK investment.
- This will give savers an additional annual subscription allowance of £5,000 on top the existing £20,000 limit.
Property
- The higher rate of property capital gains tax on residential property gains will be cut from 28% to 24%.
Furnished Holiday Lets
- Furnished holiday lets will be taxed in the same way as buy to let properties from 6 April 2025.
- This will mean that income from furnished holiday lets will cease to be relevant UK earnings for pension purposes.
March 2024
Disclaimer:
All the above information is provided as information only and any examples used are not indicative of financial advice to address your particular requirements. The information does not constitute any form of advice or recommendation by Melville Independent plc, and is not intended to be relied upon by readers in making any financial decisions.
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