At Cleveden Park Wealth, we strive to empower you with valuable insights that can shape your financial future for the better. In this month's newsletter, we delve into the latest updates from the 2024 Budget, which may have significant implications for your financial planning strategies.
Here's a breakdown of the key highlights:
Taxes:
National Insurance Contributions (NIC): Employees will benefit from a reduction in NIC rates from 10% to 8% starting April. This change is expected to impact approximately 27 million workers, offering potential savings of up to £450 per year.
Self-Employed NIC: Self-employed individuals will also see a two-percentage-point reduction in NIC rates.
Capital Gains Tax (CGT): The higher rate of property CGT will be reduced from 28% to 24%, providing potential tax relief for property owners.
Non-Dom Tax Status: The abolition of the non-dom tax status means foreign nationals living in the UK will no longer be able to avoid paying UK tax on overseas income or capital gains.
Stamp Duty Relief: Stamp duty relief for Multiple Dwellings transactions is scrapped, impacting property purchasers.
Furnished Holiday Lettings Regime: This regime is abolished to address distortions in the property rental market.
Air Passenger Duty: Higher rates for non-economy class passengers are introduced.
Energy Profits Levy: The windfall tax on UK-produced oil and gas is extended to 2029.
Benefits:
High Income Child Benefit Charge (HICBC): HICBC will transition to a household-based system, with the threshold rising to £60,000 and the taper raised to £80,000.
Household Support Fund: Extended for an additional six months.
Debt Relief Order Fee: The £90 charge for a debt relief order is abolished.
Budgeting Advance Loans: Repayment periods for new loans increase from 12 to 24 months for low-income individuals.
British ISA and Savings Bond: A new British ISA allows for a £5,000 annual investment in UK businesses, complemented by a British Savings Bond offering a guaranteed rate fixed for three years.
Business Support:
Full Expensing: Full expensing for leased assets will apply to businesses in the future.
VAT Registration Threshold: Increased from £85,000 to £90,000 for businesses.
Economy:
GDP Growth: Predicted UK GDP growth of 0.8% in 2024 and 1.9% in 2025.
Treasury Borrowing: Expected Treasury borrowing of 91.7% of GDP in 2024-25 and 92.8% in 2025-26.
Inflation: Projected to come in below target within months.
At Cleveden Park Wealth, we understand that navigating these changes can be complex, and we're here to offer guidance tailored to your specific circumstances.
If you have any questions or would like to discuss how the Budget may affect your financial plans, please don't hesitate to contact us.
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