After yesterday’s budget, most likely the last one before the general election. I received a summary from my financial advisor.
These are the highlights.
a) The main rate of class 1 employee national insurance contributions (NICs) will be cut from 10% to 8% with effect from 6 April 2024 and the main rate of class 4 self-employed NICs will also be reduced from 8% to 6%.
b) The high income child benefit charge (HICBC) will be reformed, increasing the HICBC threshold to £60,000 from April 2024. The rate at which HICBC is charged will be halved so that child benefit is not fully withdrawn until individuals have an income of at least £80,000. HICBC will apply on a household rather than an individual basis by April 2026.
c) An additional UK individual savings account (ISA) will be created with a £5,000 allowance in addition to the current £20,000 ISA limit.
d) The higher rate of capital gains tax (CGT) for residential property disposals will be cut from 28% to 24% from 6 April 2024.
e) The furnished holiday lettings tax regime will be abolished from 6 April 2025.
f) The value added tax (VAT) registration threshold will rise from £85,000 to £90,000 from 1 April 2024. The deregistration threshold will rise from £83,000 to £88,000.
g) The non-UK domicile rules will be replaced, from 6 April 2025.
Considering this is the last budget before an election, it just shows the state of the country, as there is nothing really to shout home about and with the tax thresholds not changing, more people will actually be paying more tax in the next few years.
Nothing from the budget helped me at all.
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