Spring Budget 2024

The Spring Budget was delivered by Chancellor of the Exchequer, Jeremy Hunt, on 6th March, with the headline announcement being a reduction in the main rate of employee National Insurance contributions from 10% to 8% (from 6th April 2024).

Other changes include the income level at which child benefit begins to be reduced increasing from the current £50,000 to £60,000, and the planned introduction of an additional “UK ISA” allowance of £5,000.

The OBR (Office for Budget Responsibility) forecasts the UK economy will grow by 0.8% this year and 1.9% in 2025, with inflation forecast to reduce to its target rate of 2% by the end of June.

Key figures for the new 2024/25 tax year are now as follows:


• Standard annual allowance to remain at £60,000
• MPAA (Money Purchase Annual Allowance, for individuals who have accessed flexible pension income) to remain at £10,000
• The Lifetime Allowance (currently £1,073,100) tax charge has been removed, but restrictions remain on tax-free lump sum and death benefits
• Flat rate state pension to increase from £203.85 to £221.20 per week

Individual Tax

• Personal allowance to remain at £12,570
• Higher rate tax threshold to remain at £50,270
• Additional rate tax threshold to remain at £125,140
• Rates of income tax unchanged
• Higher rate capital gains tax for residential property gains to reduce from 28% to 24% (basic rate remains at 18%)
• Capital gains tax allowance to reduce to £3,000
• Dividend allowance to reduce to £500
• Personal savings allowance to remain at £1,000 (basic rate taxpayers), £500 (higher rate taxpayers) or £0 (additional rate taxpayers)

Corporation Tax

• Corporation Tax to remain at 25% for larger companies (profits above £250,000)
• Corporation Tax for smaller companies (profits below £50,000) to remain at 19%, with tapered rates for profits £50,000 – £250,000


• ISA allowance remains at £20,000
• JISA allowance remains at £9,000
• LISA allowance remains at £4,000
• New “UK ISA” allowance of £5,000 proposed

Please note that different tax rates and allowances apply in Scotland.

This article is for information only and should not be construed as advice or a recommendation. You should always seek independent financial advice prior to taking any action.

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