Spring Budget Round-Up

March 7, 2024

There were very few surprises in yesterday’s Spring Budget as much had been heavily trailed in the media already.

But here is our quick budget round-up to keep you up to date with what our experts have taken from the Chancellor, Jeremy Hunt’s announcement…


Capital Allowances

Full expensing was made permanent in the Autumn Statement. Currently, full expensing only applies to assets which are purchased by businesses; however, it was announced that full expensing will soon apply to leased assets too. A draft legislation will be published within a few weeks, and we will bring you an update once we have all the information.


Furnished Holiday Lets – Regime Abolished

The Chancellor announced that the Furnished Holiday Lettings Tax Regime will be abolished. Abolishing this tax will raise £245 million a year. Capital Allowances will no longer be available on FHL properties from April 2025. Further details on this are yet to be released, but our team will provide an update once more is clarified surrounding the implementation.


Multiple Dwellings SDLT Relief Abolished

Following a review into mixed use property purchases and multiple dwellings relief, the multiple dwellings relief for Stamp Duty Land Tax will be abolished from 1 June. The rules concerning mixed-use properties (i.e. commercial and residential buildings) will remain unchanged. The loss of this relief will significantly increase the acquisition costs where investors are purchasing more than one dwelling. They may wish to revisit their property strategies or speak to our SDLT experts for alternative savings that might be fruitful for them.


Merged SME / Large Company R&D Scheme

The Spring Budget (and the Autumn Statement) confirmed the long anticipated merged R&D tax relief scheme, which will come into effect for accounting periods beginning on or after 1 April 2024. There are positives to this change, along with more clarification, however this could provoke more businesses to explore other avenues to improve their margins. The UK Patent Box Scheme, for example, is a tax mechanism that can reduce corporation tax by 60% and not many businesses are taking advantage of its lucrative benefits.


Regulation of Tax Advice

HMRC are set to raise standards in the tax advice market by strengthening the regulatory framework and improving registration. Bonham & Brook support this move, as they understand the importance of good, reliable tax advice for individuals and businesses.  A consultation will run for 12 weeks, until 29 May 2024 – further details can be found here.


Good News for UK Film and Arts

A total of circa £1billion of incentives were announced to boost the UK film and arts industry over the next 5 years.

The UK film industry welcomes a momentous change in tax relief. The introduction of a 53% expenditure credit (equating to a tax relief of around 40%) is available for UK film productions with a budget of up to £15 million. This could be a game-changer for indie film makers in the UK and help to ensure that brilliant acting and production work can be carried out in the UK. Full details are available here.

From 1 April 2025 the rates of relief for theatres, orchestras and museums will be made permanent, with 45% for touring and 40% for non-touring productions.


Overview of the announcements:

  • A 2p cut to National Insurance contributions would go ahead from April, saving the average worker around £350 a year
  • Class 4 NIC for the self-employed will reduce 2%
  • VAT registration threshold increases to £90k from 1 April
  • Non domicile tax rules will be abolished from April 2025
  • Personal tax thresholds remain frozen
  • Child Benefit rules will see a shake up
  • Multiple dwellings relief for SDLT abolished from 1 June
  • The £90 debt relief order fee will be scrapped
  • Vulnerable households will receive £500 million in extra support
  • NS&I will launch a British Savings Bond
  • A new UK ISA will be introduced
  • Air Passenger Duty will rise in 2025/26
  • Vaping products will see a tax rise in 2026
  • Alcohol and Fuel Duty remains frozen


Specialist Tax Advice

As always, businesses and individuals should consider their own personal economies and consider how the changes coming out of the Spring Budget will impact them personally and directly.

If you would like to discuss how any of these changes will impact your tax planning strategies or are keen to explore how your company could benefit from tax incentives and reliefs, then our experts are on hand and happy to talk!

Call us on 020 3523 9125 or email us at info@bonhamandbrook.co.uk

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