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6 March 20242 minute read

UK Spring Budget 2024

Being the year of a general election in the UK, some tax cuts were anticipated ahead of this Spring Budget. To some extent these were delivered for individuals in the form of a cut to the rate of national insurance paid by employees and the self-employed, and a cut to the higher rate of capital gains tax paid by individual sellers of residential property such as individual landlords. No changes were made to the UK corporation tax rates. The government expressed a plan “when fiscal conditions allow” to extend “full expensing” (allowing companies to claim an immediate full corporation tax deduction for qualifying capital investments) to leased assets with draft legislation due shortly. The VAT registration turnover threshold is to be raised from GBP85,000 to GBP90,000 per year with effect from 1 April 2024.

In relation to real estate, the government announced the abolition of stamp duty land tax multiple dwellings relief with effect from 1 June 2024 and a summary of responses to the consultation on the Reserved Investor Fund was published with draft legislation on its implementation expected shortly.

In relation to individuals, the government announced that the special regime for “non-domiciled” individuals will be abolished from 6 April 2025. It will be replaced with a new regime allowing individuals an exemption from tax on foreign income and gains for the first four years of residence after a period of ten tax years of non-UK residence.

Finally, the government is consulting on the UK’s implementation of the OECD’s Cryptoasset Reporting Framework (CARF) and associated amendments to the Common Reporting Standard (CRS) as well as on potentially extending the CARF and CRS reporting requirements to require UK reporting entities to include information on UK residents.

Further government announcements, draft legislation and consultations are expected at a Tax Administration and Maintenance Day scheduled for 18 April.

In the meantime, read more about the Spring Budget highlights below.