Guide to the Spring Budget 2024 from Nolan Wealth Management

The Chancellor made a significant announcement, revealing a further 2p cut in Class 1 National Insurance Contributions (NICs). He said this move is part of his strategy to support families through ‘permanent cuts in taxation’, demonstrating a commitment to long-term growth.

While this reduction in NICs may not be as impactful as a speculated cut to the Income Tax rate, it is expected to provide some relief for the workforce, particularly those feeling the financial strain. However, it's worth noting that the continued freeze on tax thresholds could gradually diminish the benefits of this NICs reduction over the next four years.

The Chancellor plans to finance this reduction through increased duty on tobacco and vapes and changes to the tax system for non-UK domiciles. The latter will result in higher taxes paid to the UK on foreign income and profits while encouraging inward investment by eliminating the 'remittance ba-sis' taxation for these individuals.

Mr Hunt also announced easing the Child Benefit income threshold, changing different taxes and revamping the Individual Savings Account (ISA) system, introducing a new British ISA. This allows an extra £5,000 tax-efficient investment into UK equities beyond the current limits, which remain un-changed. Along with a new British Savings Bond, this measure aims to incentivise people to invest in UK-centric assets, with the goal of stimulating the economy in a targeted way.

What does the Spring Budget 2024 mean for you?

Our review of the Spring Budget 2024 delves into the main announcements. If you need additional information or wish to explore how these measures might impact your finances or business, please contact us for a more in-depth discussion and details.

THIS GUIDE TO SPRING BUDGET 2024 DOES NOT CONSTITUTE FINANCIAL, TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.