There were several announcements at the Spring Budget on 6th March:
National Insurance contributions – There is to be a reduction to 8% for the Class 1 main rate of employee contributions. For the self-employed, the rate of Class 4 contributions is to be reduced to 6%. Both take effect from 6th April 2024.
Child Benefit Charge – The income threshold is to be increased to £60,000 from 6th April 2024.
Capital Gains Tax – For sales of residential properties (outside of your main residence which is generally exempt) the rate of higher rate tax is to be reduced to 24% from 6th April 2024. However, the annual exempt amount has now been reduced to £3,000 for all taxpayers from 6th April 2024.
Furnished Holiday Lettings – These are a particular type of short-term rental businesses that qualify for special tax treatment provided they meet the requirements. From April 2025 this class of income is to be abolished, and rental income will all be classed together under the normal rental income tax rules.
Please do make contact if you have any queries – there is no charge for the initial short email consultation.