Chancellor Jeremy Hunt presented the Budget Statement and made some shocking announcements. Among the changes, most people were surprised by the abolition of Multiple Dwellings Relief. Below are the key highlights announced by Jeremy Hunt.
One of the key highlights is a 2% cut in National Insurance Contributions (NIC) for both employees and the self-employed. This move is anticipated to inject vitality into the workforce and bolster disposable incomes.
In a major policy shift, the Chancellor announced the abolition of the Non-Domiciled (Non-Doms) tax regime, effective April 2025. The existing system will be replaced with a residency-based framework featuring a two-year transition period for current non-doms. This change is designed to simplify the tax landscape and ensure a fairer contribution from all residents.
A significant boost for small businesses comes with the VAT registration threshold increase to £90,000, effective from April 1. This adjustment aims to alleviate financial pressures on smaller enterprises, fostering growth and sustainability.
April 2025 will mark the end of the Furnished Holiday Lettings regime, streamlining tax regulations and creating a more straightforward system. Additionally, the Chancellor announced the abolition of Stamp Duty Land Tax (SDLT) Multiple Dwellings Relief from June 1, 2024, aiming to create a more equitable property tax environment.
Investors and property owners stand to benefit from the Chancellor’s decision to reduce the higher rate of Capital Gains Tax (CGT) on residential property to 24%. This measure seeks to stimulate activity in the property market while optimising returns for investors.
Families receiving Child Benefits also find relief in the budget, with the High Income Child Benefit Charge (HICBC) threshold raised to £60,000. Further, the Chancellor outlined plans to transition to a household-based HICBC system by 2026, ensuring a fairer assessment of benefit eligibility.
The Chancellor’s ‘Budget for Long-Term Growth’ is poised to leave a lasting impact on the economic landscape, fostering an environment of investment, simplicity in tax regulations, and enhanced support for businesses and families alike. As the nation looks towards a future of sustained growth, these measures set the stage for a resilient and prosperous economy.
