Businesses

• The government will introduce legislation in Spring Finance Bill 2024 to set the charge for Corporation Tax, maintaining the main rate at 25% and the small profits rate at 19% as previously announced for the financial year beginning 1 April 2025.
• The refocused Investment Zones programme, launched at Spring Budget 2023, offers tax reliefs to attract businesses to the allotted areas. The government has confirmed that the Investment Zones programme will be extended from five to ten years in Scotland and Wales, in line with the extension in England announced at Autumn Statement 2023.

VAT and duties

• From 1 April 2024, the VAT registration threshold will increase from £85,000 to £90,000 and the deregistration threshold from £83,000 to £88,000. Both will be frozen at these levels.
• The fuel duty freeze will remain in place for 2024-2025 and the 5p fuel duty cut will be extended until March 2025.

Property

• For transactions with an effective date on or after 1 June 2024, Multiple Dwellings Relief, a bulk purchase relief in the SDLT regime in England and Northern Ireland, will be abolished.
• From 6 March 2024, registered providers of social housing in England and Northern Ireland are not liable for Stamp Duty Land Tax (SDLT) when purchasing property with a public subsidy and public bodies will be exempt from the 15% anti-avoidance SDLT rate.
• The Chancellor announced the abolition of the Furnished Holiday Lettings tax regime from April 2025.
• The higher rate of Capital Gains Tax on residential property sales will be reduced from 28% to 24% from 6 April 2024.

Individuals & Self-employed

• Effective from 6 April 2024, there will be a further reduction in National Insurance contributions (NICs) rates as follows:
  • The main rate of Class 1 NICs for employees will be reduced from 10% to 8%.
  • The rate of Class 4 NICs for self-employed individuals will be reduced to 6%.
• Overseas Workday Relief will be available to certain employees in their first three tax years of UK tax residence for earnings from employment duties carried out overseas.

Consultations

• No further reforms to the R&D tax regime were announced. However, an ‘expert advisory panel’ to support the administration of the regime was announced. This panel will provide industry insights and work with HMRC to improve guidance for the benefit of claimant companies. The upcoming consultation on standards in the tax advisory market will have an R&D tax focus.
• Draft legislation is to be released for consultation on extending full expensing to leased assets.
• The government will provide an update on the recent consultation on tackling non-compliance in the umbrella company market at Tax Administration and Maintenance Day. In Summer 2024, the government will also publish new guidance to support workers and other businesses who use umbrella companies.

For a wider overview of the Budget please read our response: Spring Budget 2024: Tax response | Grant Thornton

If you would like to discuss any of these measures in more detail, please reach out to duncan.g.martin@uk.gt.com or aishwarya.lakshmanan@uk.gt.com