Today the Chancellor, Jeremy Hunt announced his Spring Budget – the last before the next general election. He said his ‘Budget for Long Term Growth,’ ‘delivers lower taxes, more investment and better public services.”
The announcements of most relevance to our clients include:
Business
- The Chancellor noted that in his Autumn Statement he unveiled a £10billion tax cut for businesses that make capital investments in the UK, known as “full expensing”. He has now announced businesses will be able to claim tax relief for leased assets as well.
- A further £200m will be provided to the post-pandemic Recovery Loan Scheme which lends money to small businesses to boost growth.
- There will be an increase in the VAT registration threshold from £85,000 to £90,000, meaning that around 28,000 small businesses will no longer have to pay VAT.
Property
- Stamp duty relief for people who purchase more than one dwelling in a single transaction, known as Multiple Dwellings Relief, is abolished.
- The Furnished Holiday Lettings regime is abandoned because it created “a distortion meaning that there are not enough properties available for long term rental by local people.”
- From today, the rules for claiming First-Time Buyers’ Relief from Stamp Duty Land Tax in England will be amended so that individuals buying a leasehold residential property through a nominee or bare trustee will be able to claim First-Time Buyers’ Relief, including victims of domestic abuse.
Workers
- Employee National Insurance (NI) tax is cut from 10% to 8% in April, affecting 27 million working people.
- Self-employed NI rates to be reduced by 2p to 6p.
Tax
- The higher rate of property Capital Gains tax is reduced from 28% to 24%.
- Non-dom tax status is abolished. It means foreign nationals who live in the UK, but are officially domiciled overseas, will no longer be able to avoid paying UK tax on their overseas income or capital gains. A “simpler” residency-based system to be implemented in 2025.
Family courts
- £170 million is being committed to deliver a justice system fit for the modern era.
- This includes £55 million for the Family Courts to offer online targeted guidance and earlier legal advice, shortening wait times and supporting families through non-court dispute resolution; and £15 million to introduce digital solutions, reducing administrative burdens in the courts.
Creative industries
- There will be a package of support to establish the UK as a world leader in fast growing industries over the next five years, including over £1 billion in new tax reliefs for creative industries.
- Eligible film studios in England will secure 40% relief on their gross business rates until 2034.
- Plans revealed for a new tax credit for independent films with budgets of less than £15m.
Environment
- The Green Industries Growth Accelerator will be allocated an extra £120 million to build supply chains for offshore wind and carbon capture and storage.
If you’d like to speak to the B P Collins team about the Spring Budget, please contact 01753 889995 or email enquiries@bpcollins.co.uk.
