Spring Budget 2024 Highlights

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Spring Budget 2024 Highlights

Mar 11, 2024

Last week Chancellor Jeremy Hunt delivered his Spring Budget:

• Employee National Insurance sees a 2% reduction: Starting April 2024, the new NI rate will be 8%, down from the previous 10% (initially 12%).

• Further reduction in Class 4 NICs: As of April 2024, there will be an additional 2% reduction in Class 4 National Insurance contributions (originally 9%, now 6%) applied to profits ranging from £12,570 to £50,270.

• Increased High Income Child Benefit Charge threshold: Effective April 2024, the highest earning parent can now earn up to £60,000 to qualify for full child benefit, compared to the previous limit of £50,000.

• Pension lifetime allowance abolished: As of April 2024, the current £1,073,100 lifetime limit before a pension becomes taxable will be eliminated.

• Introduction of the British ISA: A new tax-free £5,000 ISA allowance for investment in UK equities is introduced from April 2024, supplementing the existing £20,000 allowance.

• Reduction in Higher Rate Capital Gains Tax: Starting April 2024, individuals earning over £50,270 will experience a 4% cut in Capital Gains Tax, decreasing from 28% to 24%.

• Scrapping of Furnished Holiday Lettings tax regime: From April 2025, landlords will no longer be allowed to deduct mortgage interest payments from their rental income.

• Withdrawal of Stamp Duty relief for multiple dwellings: Individuals looking to purchase additional properties will no longer be eligible for stamp duty relief.

• Increased VAT threshold: Effective April 2024, the threshold for small businesses to register for VAT is raised from £85,000 to £90,000.

• Frozen Alcohol and Fuel Duty: The current freeze on alcohol duty is extended until February 2025, and fuel duty cuts remain in place for another year.

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Plans for ID verification from Companies House

by PH186232 • 22 Oct, 2024

Starting in early 2025, Companies House will begin rolling out new identity verification requirements for company directors and persons with significant control (PSCs). This means that, in the future, before filing information on the Companies House register, directors will need to prove their identity. This change is designed to reduce fraud and improve transparency. The reforms are part of the Economic Crime and Corporate Transparency Act 2023, which aims to combat fraudulent activity. As part of these reforms, accountancy firms and solicitors registered for anti-money laundering (AML) supervision will be among the first required to comply, starting in early 2025. By spring 2025, accountants and other professional service providers, who are registered for AML supervision, will be able to become authorised corporate service providers (ACSPs). This means they’ll be able to help clients verify their identities and pass that information on to Companies House. By autumn 2025, these new ID verification requirements will be mandatory for new directors and PSCs when setting up a company or making new appointments. If your business already exists, you will have a 12-month transition period until autumn 2026 to ensure your directors and PSCs comply with these requirements when your next confirmation statement is due. This is a significant change, therefore it’s important to stay ahead of these requirements to avoid any disruptions to your business.