Spring Budget 2024: Key Financial Changes Simplified
In today’s spring budget announcement, significant changes were revealed that could affect your finances. Here’s a breakdown of what was announced:
Non-Dom Tax Regime Replacement
The government plans to scrap the tax breaks for wealthy foreign residents, known as non-domiciled tax status. Instead, they will introduce a new scheme aimed at fairness and competitiveness, called the “modern residency system.”
Introduction of British ISA
A new type of ISA, called the “British ISA,” will be introduced. This will provide an additional £5,000 tax-free allowance for investing exclusively in the UK, offering new opportunities for the public to save and invest.
Reduction in Property Capital Gains Tax
The higher rate of property capital gains tax will decrease from 28% to 24%. This move is expected to boost revenues by encouraging more property transactions.
Stamp Duty Relief Abolished
Stamp duty relief for individuals purchasing multiple dwellings will be abolished due to frequent abuse of the system, according to the Chancellor.
End of Furnished Holiday Lettings Regime
Tax breaks incentivizing second home owners to let their properties to holidaymakers rather than long-term tenants will be scrapped, with the abolition of the furnished holiday lettings regime.
National Insurance Contributions Cut
There will be a reduction in National Insurance contributions for employees starting from April 6. This cut, worth around £450 per year for the average earner, will see the rate decrease by 2p.
Enhanced Childcare Benefits
Changes to childcare benefits were also announced. The benefit will now consider household income collectively rather than individually, effective from April 2026. Additionally, the threshold will rise from £50,000 to £60,000, with the tapering limit increasing to £80,000 for immediate support.
Stay informed and consider how these updates might impact your financial situation.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.
