Budget Summary – March 2024

The Chancellors headline measure was the cut to National Insurance rates, following a similar cut already announced in November 2023. Child benefit rules are also to be overhauled, and a new British ISA allowance is set to provide tax breaks for individuals investing in UK companies.

The key points are outlined below.

Personal Tax Matters

National Insurance

  • As of April 2024, the rate of National Insurance contributions for employees will be cut from 10% to 8% from April 2024. This follows the 2% cut (from 12% to 10%) which started in January 2024.
  • Similarly, Class 4 National Insurance Contributions paid on self- employed profits between £12,570 and £50,270 will be cut from 9% to 6% which takes effect from 6 April 2024.

High Income Child Benefit Tax Charge

  • The earnings threshold for starting to lose Child Benefit will be increased from £50,000 to £60,000. Additionally, the level at which the benefit is lost completely will increase from £60,000 to £80,000. This will apply from April 2024.
  • Plans are in place to apply the limitations to household income rather than individuals starting in April 2026.

Capital Gains Tax

  • The capital gains tax rate (CGT) on property sales will reduce from 28% to 24%. This will benefit landlords and second homeowners who sell their properties, as CGT does not apply to the sale of a main residence. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.
  • However, the furnished holiday let scheme will be scrapped. This will reduce tax breaks on short-term lets and ultimately make it less profitable to let to holidaymakers than to long-term tenants.

Non-UK Domicile Rules – “Non-Dom”

  • The remittance basis of taxation for non-UK domiciled individuals will be scrapped by April 2025. This refers to people who live in the UK but are domiciled (i.e. have permanent links) abroad and, therefore, only pay UK tax on UK income. The new rules mean that after four years of living in the UK, anyone with non-dom status will pay the same tax on worldwide income as other residents.

British ISA

  • A new UK ISA will be created with its own allowance of £5,000 a year. This would be in addition to the current ISA limits of £20,000 in a tax year. The government will consult on the details at a later date.

Stamp Duty Land Tax – Multiple Dwellings Relief (MDR)

  • Multiple Dwellings Relief in the Stamp Duty Land Tax regime will be abolished from 1 June 2024.
  • MDR can still be claimed for contracts exchanged on or before 6 March 2024.

Indirect Taxes

VAT Registration Threshold

  • The taxable turnover threshold which determines mandatory VAT registration will be increased from £85,000 to £90,000.
  • The taxable turnover threshold which determines deregistration will be increased from £83,000 to £88,000.
  • For Northern Ireland, the registration and deregistration thresholds for acquisitions will increase from £85,000 to £90,000.
  • These changes will be effective from 1 April 2024.

Fuel Duty

  • The fuel duty will remain frozen for at least one more year. The 5% cut introduced in 2022 was due to expire this month but has now been extended.


  • Free childcare hours for children aged 9 months and over will continue for the next two years.
  • However, nurseries continue to struggle with rising costs and limited resources, which means that the free hours will not necessarily translate into more nursery places. Additional support has been promised, but concrete details are sparse.

Please don’t hesitate to contact a team member to learn more about the topics covered.