With most of the 2024/25 tax rates and allowances already set, last week’s ‘pre-election’ budget was, for most people, fairly uneventful.

·        Employee’s Class 1 National Insurance – Having been reduced to 10% from 6^th January 2024, the rate from 6^th April 2024 will fall again to 8%.

·        Married women’s reduced rate between primary threshold and upper earnings limit – This follows a similar reduction to Class 1 NI, falling from 3.85% to 1.85% from 6^th April 2024.

·        Class 4 National Insurance (self-employed) – Will fall to 6% from 6^th April 2024.

·        VAT – Registration threshold increased to £90,000 for 2024/25. Deregistration threshold rises to £88,000.

·        Dividend Allowance – As previously announced, this will fall to £500 for 2024/25.

·        Personal Allowance – As previously announced, this remains unchanged at £12,570.

·        Pensions (Annual Allowance for tax relief) – Unchanged at £60,000.

·        Capital Gains Annual Exemption – Reduced to £3,000 for individuals from 6^th April 2024, and to £1,500 for Trusts.

·        Capital Gains Tax on sale of residential property – The higher rate is reduced to 24% from 6^th April 2024. The basic rate remains unchanged at 18%.

·        High Income Child Benefit Threshold – changes will be introduced from April 2024 including increasing the adjusted net income starting threshold to £60,000.

·        Stamp Duty Land Tax – purchasers of residential property in England and Northern Ireland who acquire more than on dwelling in a single transaction or linked transactions will not be able to obtain Multiple Dwellings Relief from 1^st June 2024.

·        Furnished Holiday Lettings regime – The scheme, giving tax advantages to landlords who let out short-term furnished holiday properties, is being abolished from April 2025.

·        Non-domiciled status – The current remittance basis for non-UK domiciled individuals will be replaced with a simpler residence-based regime, effective from 6^th April 2025.

If you require more information, or would like to discuss how we can be of service to you, please e-mail admin@masassociates.co.uk.