The Spring Budget 2024 introduced several important personal tax changes that will affect employees, the self-employed, landlords, expats, and higher-income families.
While some headline tax rates remain unchanged, the Budget delivered:
- National Insurance cuts
- Changes to non-dom taxation
- Higher Child Benefit thresholds
- Capital Gains Tax reductions
- Major reforms for self-employed reporting
Below is a clear, practical breakdown of what changed — and how it could affect your Self-Assessment tax return.
Spring Budget 2024 – Key Takeaways (TL;DR)
- Income tax rates and personal allowances remain unchanged
- Further National Insurance cuts from April 2024
- High Income Child Benefit Charge threshold rises from £50,000 to £60,000
- Residential Capital Gains Tax reduced from 28% to 24%
- Furnished Holiday Lettings tax relief ends from April 2025
- Non-dom remittance basis abolished from April 2025
- VAT registration threshold increases to £90,000
- No changes to ISA or pension contribution limits
Changes to Non-Domicile Status & the Remittance Basis
One of the most significant announcements affects non-domiciled UK residents and expats.
What’s Changing?
From 6 April 2025, the UK will:
- Abolish the remittance basis of taxation
- Introduce a residence-based Foreign Income and Gains (FIG) regime
The New FIG Regime (From April 2025)
If you:
- Move to the UK after 10 consecutive years abroad
- Become UK tax resident
You may qualify for a 4-year exemption where:
- Foreign income and gains are not taxed in the UK
- Even if the money is brought into the UK
Key Points:
- The regime is opt-in annually
- Claiming FIG means losing your UK personal allowance and CGT exemption
- Overseas Workday Relief remains available for the first 3 years
Transitional Rules:
- Individuals already in the UK for fewer than 4 years by April 2025 may still benefit
- 2025/26 will include 50% tax on foreign income (full tax on gains)
- Full worldwide taxation applies from 2026/27
- A Temporary Repatriation Facility allows historic foreign income to be brought into the UK at 12% tax for two years
This is a complex area and one where incorrect filing can be extremely costly.
National Insurance Cuts (From April 2024)
The Chancellor announced further NIC reductions, building on January 2024 changes.
Employees (Class 1 NIC)
- Reduced from 12% to 8% from 6 April 2024
Self-Employed (Class 4 NIC)
- Reduced from 9% to 6% from 6 April 2024
- This is a larger cut than previously announced
These changes increase take-home pay but do not remove the need to file Self-Assessment where required.
High Income Child Benefit Charge (HICBC)
From April 2024, the HICBC thresholds increase:
|
Income |
Impact |
|
Under £60,000 |
No charge |
|
£60,000 – £80,000 |
Partial charge |
|
Over £80,000 |
Full clawback |
Previously, the charge began at £50,000 and fully applied at £60,000.
Self-Assessment is still required for affected families — even if tax is otherwise paid via PAYE.
Capital Gains Tax Changes
Annual Exempt Amount
- Reduced to £3,000 for 2024/25 (down from £6,000)
CGT Rates
- General assets remain:
- 10% (basic rate)
- 20% (higher rate)
- Residential property CGT reduced:
- From 28% → 24%
This impacts landlords, second-home owners, and property investors.
Furnished Holiday Lettings (FHL) – Tax Advantages Ending
From 6 April 2025, the special tax treatment for Furnished Holiday Lets will end.
This removes:
- Capital allowances
- Pension-qualifying income treatment
- Certain CGT reliefs
The change is designed to reduce incentives for short-term lets and encourage long-term residential rentals.
ISA Allowances (No Change)
For the 2024/25 tax year:
- Adult ISA allowance remains £20,000
- Lifetime ISA limit remains £4,000
- Junior ISA / Child Trust Fund limit remains £9,000
Pension Contributions (No Change)
No changes were made in Spring Budget 2024.
Previously announced limits still apply:
- Annual Allowance: £60,000
- Lifetime Allowance Charge: abolished
Other Important Changes from April 2024
- Self-Employed Profit Basis Reform
From 2024/25:
- Trading profits are taxed on a tax-year basis
- Regardless of accounting date
- Following a transitional year in 2023/24
This affects many sole traders and partnerships.
- Default Cash Basis Accounting
From 2024/25:
- Cash basis becomes the default
- Accruals accounting remains optional
This simplifies reporting for many self-employed individuals but isn’t suitable for everyone.
- Self-Assessment Filing Requirement Changes
- For 2023/24: Individuals earning over £150,000 must file
- From 2024/25:
- Individuals fully taxed via PAYE may no longer need to file
- Provided there is no untaxed income
This does not apply to:
- Landlords
- Self-employed individuals
- Those with capital gains or foreign income
What This Means for Your Tax Return
Spring Budget 2024 introduced:
- Lower NICs
- New planning opportunities
- Increased complexity for expats and the self-employed
Many people will still need to file a Self-Assessment tax return, even where PAYE applies.
Errors, missed reliefs, or late filing can result in:
- Penalties
- Overpaid tax
- HMRC enquiries
