2024 Budget
Alcohol duty
The freeze in duty was due to end in August but has been extended to February next year.
Fuel duty
Fuel duty will remain at its current rate and be frozen for the next 12 months. This will save average car driver £50 next year.
Inflation
The Office for Budget Responsibility (OBR), says inflation will go below Bank of England target of 2% in a few months’ time.
VAT registration
VAT Registration is increasing to £90,000 (was £85,000) from April 2024. It had been frozen for 7 years; the rise of £5,000 doesn’t really compensate entirely for that.
ISA Allowance
The chancellor says the government will create a “British” ISA adding it will come in the form of an extra £5,000 tax-free allowance for the public to invest exclusively in UK. This will be on top of the existing ISA allowances and ensure that British savers can benefit from the growth of the most promising UK businesses
Smoking and Vaping
Introduced a new levy on vaping. There will also be a one-off increase in tobacco duty.
Air Passenger Duty (APD)
The government is increasing the Air Passenger Duty (APD) for business class travellers.
Capital gains
The higher rate of property capital gains tax is to be reduced from 28% to 24%.
Non-Dom Status
The government has announced it will scrap and reform the tax break for wealthy foreign residents in the UK who have non-domiciled tax status.
National Insurance
A further reduction of 2% will be made from 5 April 2024, worth around £450 a year for someone on an average salary.
Child benefit
Hunt says he will consult on a new rule to make the benefit to apply to collective household income, rather than on an individual basis, which he aims to introduce by April 2026.
But, as a more imminent help, Hunt announces the threshold will go up from £50,000 to £60,000. The top of the taper at which it is withdrawn will go up to £80,000.
