Jeremy Hunt has delivered his second statement as Chancellor of the Exchequer this afternoon.
The chancellor announced a 2p cut to the rate of National Insurance paid by employees, this is aiming to save the average worker approximately £450 a year. This will rise to £900 once combined with the reduction from the last autumn budget.
Key points on Tax cuts:
- National Insurance cut by 2p.
- Full expensing will extend to leasing.
- Tax refiled for savers on new ‘British ISA’.
- CGT on investment property cut from 28% to 24%.
- The threshold for child benefits will be raised to £60,000.
- Abolition of non-dom status.
- The VAT Threshold for small businesses will increase from £85,000 to £90,000.
- A new ‘British ISA’ which will provide an additional £5,000 of annual tax-free investment in UK equities.
- Fuel Duty will remain frozen giving motorists another £5bn tax break.
- Alcohol duty is frozen.
Key points on Tax rises:
- From October 2026 vapes and tobacco will be hit by duties.
- There will be no tax perks for furnished holiday lets.
- Higher duty on airfare for Business class.
- Multiple Dwellings Relief (SDLT) removed from June 2024.
As always, if you would like any further information regarding the above, please liaise with your usual Williamson & Croft contact.