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Other Matters - Spring Budget 2024

Capital gains

The capital gains tax annual exempt amount will be reduced from £6,000 to £3,000 from April 2024. The main rate of capital gains tax applicable to gains on residential property will reduce from 28% to 24% effective from April 2024.

Taxation of Non-Domiciled Individuals

From April 2025, the preferential remittance-basis tax treatment for non-domiciled individuals will be removed. Instead, there will be rules for "new arrivals" into the UK, being individuals who have been non-resident in the UK for 10 consecutive years. These "new arrivals" will be able to claim full relief on foreign income and capital gains in the first 4 years following their arrival in the UK. They will also be able to remit these funds to the UK. For those already in the UK, they will be treated as "new arrivals" if they have not already completed four years of tax residence, following a period of 10 years of non-residence. These rules are complex, and advice should always be sought by a taxpayer who may be affected by them.

Inheritance tax

The inheritance tax nil-rate bands will stay fixed at their current levels until April 2028. The nil-rate band will continue at £325,000, the residence nil-rate band will continue at £175,000 and the residence nil-rate band taper will continue to start at £2 million.

Furnished Holiday Letting

The Furnished Holiday Letting (FHL) is a special regime applying to residential property rental income from short-term lettings. The Government is abolishing this regime effective from April 2025. This change will have far-reaching implications for taxpayers who have been able to avail of the favourable tax treatment allowed under the current FHL rules. Anyone who currently has income from FHL properties should seek advice on the changes well in advance of the changes coming into effect in 2025. 

Stamp Duty Land Tax changes

A number of changes are made to the Stamp Duty Land Tax (SDLT) regime. These include the following:

  • The abolition of Multiple Dwellings Relief, broadly from 1 June 2024 but subject to transitional rules, for purchasers of residential property in England and Northern Ireland.

  • Changes to First-Time Buyer Relief to extend it to individuals buying a new residential lease via a nominee or bare trust for transactions with an effective date (usually the date of completion) on or after 6 March 2024, but subject to transitional rules.

  • Public bodies in England and Northern Ireland will be removed from the scope of the 15% SDLT higher rate charge where the effective date of transaction (usually the date of completion) is on or after 6 March 2024.

Other changes

  • The alcohol duty freeze will be extended until February 2025.

  • The temporary 5p cut in fuel duty rates will be extended until March 2025 and the planned inflation increase for 2024/25 will not take place.

  • A new duty on vaping products will be introduced from 1 October 2026. The government will also introduce a one-off tobacco duty increase from the same date.

Recovery Loan Scheme

The Recovery Loan Scheme, a Government-backed scheme to assist access to finance for companies recovering from the impact of the Coronavirus pandemic, has been extended. Access to the scheme will now be available until March 2026. 

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