Spring Budget
Chacellor abolishes furnished holiday lets treatment and announces stamp duty land tax changes: From April 2025, taxpayers will no longer be able to treat their property business as a furnished holiday let. Stamp duty land tax multiple dwelling relief will be abolished from 1 June 2024.
Spring Budget 2024: the measures you missed: ICAEW’s Tax Faculty scans the Spring Budget documents for other tax-related announcements that didn’t make the headlines.
Families should reconsider claiming child benefit from 6 April: Approximately 180,000 families are encouraged to reconsider claiming child benefit in light of changes to the high income child benefit charge, which apply from 6 April 2024.
Changes to transfer of assets abroad rules: New legislation announced in the Budget will prevent individuals from using a company to bypass the transfer of assets abroad anti-avoidance provisions.
Spring Budget 2024: measures for business: As promised in the Autumn Statement, the Chancellor used the Spring Budget 2024 to announce a suite of tax relief changes to incentivise and support growth in the UK’s creative sector.
Sigificant changes to high income child benefit charge: Child benefit will be recovered based on household income, the Chancellor has announced. This will challenge HMRC’s limited resources as it will have to collect additional data and change its systems and processes.
Non-dom regime replaced by foreign income and gains regime: In the Spring Budget, the Chancellor announced that the current remittance basis of taxation will be abolished for UK resident non-domiciled individuals from 6 April 2025 and replaced by a new four-year foreign income and gains regime.
Government cuts NIC rates again for employees and self-employed at Spring Budget 2024: From 6 April 2024, the headline rate of NIC will fall from 10% to 8% for employees, and from 9% to 6% for the self-employed. The government will also consult on how it will abolish Class 2 NIC.
VAT registration threshold to increase: Among the indirect tax Budget announcements is the increase to the VAT registration threshold from 1 April 2024. A new duty on vaping products will also be introduced as well as changes to airport passenger duty and landfill tax rates.
Draft legislation published for some Spring Budget 2024 measures: The Spring Finance Bill contains legislation which increases the thresholds for the high income child benefit charge and abolishes multiple dwellings relief for stamp duty land tax.
Need to know
HMRC halts decision to restrict helplines: One day after announcing restrictions to its VAT, self assessment and PAYE helplines, HMRC has announced a change in approach.
HMRC corrects advice given on tax relief for boiler repairs: In 2023, HMRC issued a letter stating that boiler upgrades did not constitute a repair. However, HMRC is now contacting affected taxpayers acknowledging that this advice was incorrect.
Employers, directors and shareholders to give HMRC more information: Draft regulations require employers to provide more details of employees’ hours to HMRC. Additionally, shareholders will need to provide details of close company shareholdings and dividends.
Errors made in applying the corporate interest restriction: HMRC has identified a number of common errors made by companies and agents in respect of the corporate interest restriction.
UK exporters must switch to CDS by June: The deadline to transition from using CHIEF to CDS for export declarations has been extended to 4 June 2024. Businesses are advised to switch early to avoid potential disruption.
Level of service provided by HMRC at “all-time low” says PAC: PAC has recommended more resources for HMRC so that it can meet its service standards. It has found that HMRC’s approach to off-payroll working is deterring legitimate economic activity.
Member help sheets and guidance
More guidance released on lifetime allowance abolition: HMRC has responded to feedback on the abolition of the pension lifetime allowance rules. Detailed guidance has been published and amendments will be made to the legislation, effective from 6 April 2024.
New R&D tax relief guidance ‘could be clearer’: ICAEW has identified areas of improvement for HMRC’s draft guidance on the new rules for research and development tax relief.
Consultations
Government aims to raise tax advice standards: The government is exploring options to raise standards in the tax advice market through a strengthened regulatory framework.
Changes ahead for agricultural property relief: Environmental land management and ecosystem service markets consultation outcome published, with updated legislation for changes to geographical scope of relief.
Cryptoassets: new ICAEW guidance and government consultation: ICAEW’s Tax Faculty has published two TAXguides on the taxation of cryptocurrency. The government is consulting on the implementation of the Cryptoasset Reporting Framework.
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