Here are the key tax points from this year’s Budget announcement:
Child Benefit Charge Threshold Increase:
The lower threshold for parents paying the high-income child benefit charge has been increased from £50,000 to £60,000, with the upper threshold being increased from £60,000 to £80,000.
HMRC to review the position in the longer term for household income.
VAT Threshold for Small Businesses:
The VAT threshold for small businesses has been raised from £85,000 to £90,000, effective from April 1st. This adjustment will exempt approximately 28,000 small businesses from paying VAT altogether.
National Insurance Reduction:
National insurance for employees and the self-employed has been reduced by 2% each, from 10% to 8% for employees and 8% to 6% for the self-employed.
Capital Gains Tax (CGT) cut for landlords:
The top rate of CGT on residential property has been cut from 28% to 24% from April 2024.
Furnished Holiday Lettings tax breaks abolished:
Short term and long term furnished holiday lettings will be treated the same as long term landlords for tax purposes from April 2025. This includes the loss of CGT relief and beneficial capital allowance treatment.
We will be expanding on some of these topics in due course, however if you have any queries on how the above may affect you, please do get in touch.
