Spring Budget 2024: Implications for UK Property Investors
The recently announced Spring Budget 2024 by Chancellor Jeremy Hunt has stirred speculation about its implications, with many pondering if it's an election budget. Pippa Crerar from The Guardian revealed a crucial detail buried in the budget paperwork: it's likely the final fiscal statement of this parliament, hinting at imminent elections.
While the exact timing remains uncertain, the government's moves suggest preparations for an upcoming election, igniting anticipation among the populace. But amidst the political dynamics, it's essential to dissect the budget's impact, particularly on UK property and investors.
Key Takeaways from the Spring Budget 2024:
National Insurance Reduction and Fuel Duty Freeze:
The headline-grabbing measures include a 2p reduction in National Insurance and the freeze on fuel duty, aiming to alleviate financial burdens for citizens.
High Income Child Benefit Charge Threshold Increase:
Effective from April 6, 2024, the government will raise the threshold for the High Income Child Benefit Charge from £50,000 to £60,000, with a tapered charge between £60,000 and £80,000.
Abolition of 'Non-Dom' Status:
The infamous 'non-dom' status, allowing individuals earning money in the UK to evade normal capital gains and income tax rules, will be abolished, ensuring fair taxation.
Introduction of British ISA and Savings Bonds:
To encourage domestic investment, the government announced a £5,000 allowance under the 'British ISA,' supplementing existing ISA allowances. This tax-free product will focus on UK assets, facilitated through National Savings and Investments.
Tax Breaks for Property Investors:
Recognizing the significance of the property industry, the government unveiled tax reductions for property investors:
- Reduction in Capital Gains Tax (CGT) on residential properties from 28% to 24%, effective from April 6, 2024.
- The lower CGT rate of 18% will remain for gains within an individual's basic rate band.
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