Other measures

Other measures

March 8, 2024

Filing requirement For 2023/24, taxpayers with incomes over £150,000 are automatically required to file a self-assessment tax return. The 2023 Autumn Statement included an announcement that those whose tax is all paid under PAYE will be removed from this requirement from 2024/25. However, as mentioned above, increases in interest rates on savings and reductions in

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VAT on land

Value Added Tax

March 8, 2024

Registration threshold The VAT registration and deregistration thresholds were previously intended to remain frozen at their present levels of £85,000 and £83,000 until 31 March 2026. In the first increase in the thresholds since April 2017, the thresholds have been increased to £90,000 and £88,000 with effect from 1 April 2024. The Budget announcement says

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Corporation Tax

March 8, 2024

Rate of tax The Corporation Tax rate is unchanged at 25% for companies with profits over £250,000. The ‘small profits rate’ remains 19% for companies with profits of up to £50,000. Between £50,000 and £250,000 there is a tapering calculation that produces an effective marginal rate of 26.5% on profits between these limits, but an

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Inheritance Tax

March 8, 2024

Inheritance Tax Rates The IHT nil rate band remains fixed at £325,000 until the end of 2027/28. Holding the threshold at the same amount for 19 years (from 6 April 2009) will bring far more people into the scope of the tax. However, the £175,000 ‘residential nil rate band enhancement’ on death transfers can reduce

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Business Tax

March 8, 2024

Furnished holiday lettings For many years, income from FHL has been treated as a trade for income tax purposes, enjoying a number of advantages over general property rental. A FHL has to satisfy a number of conditions about availability for letting, actual periods let during the year and length of stays; if it qualifies, the

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Property Taxation

March 8, 2024

Multiple Dwellings Relief (MDR) MDR is a relief from Stamp Duty Land Tax (SDLT) that applies to bulk purchases of properties. The Government has concluded that it does not achieve its intended objective and is open to abuse, so it will be abolished for transactions with an effective date on or after 1 June 2024.

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Construction Industry Scheme (CIS)

March 8, 2024

The CIS requires many businesses carrying out construction work to deduct tax (at either 20% or 30%) before paying subcontractors unless the supplier has gross payment status (GPS), which HMRC will grant to subcontractors who show a good record of tax compliance. From 6 April 2024, VAT obligations are added to the statutory compliance test

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Capital Gains Tax

Capital Gains Tax

March 8, 2024

Rates and annual exempt amount As announced in the 2022 Autumn Statement, the CGT annual exempt amount will be cut from £6,000 in 2023/24 to £3,000 for 2024/25. The rates of CGT are unchanged at 10% for basic rate taxpayers and 20% for higher rate taxpayers on general assets. The rate of CGT on disposals

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National-Insurance-NIC-Class-2-Class-4-

National Insurance Contributions (NIC)

March 8, 2024

In his 2022 Autumn Statement, the Chancellor announced that the thresholds for NIC would remain fixed until 2027/28. In the 2023 Autumn Statement he announced a reduction in the main rate of Employees’ Class 1 NIC from 12% to 10% to take effect from 6 January 2024; in the Spring Budget he has cut the

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High Income Child Benefit Charge (HICBC)

March 7, 2024

The HICBC continues to apply to the higher earner of a couple where one receives Child Benefit and either of them has income of more than a set threshold. For 2024/25, for the first time since the charge was introduced in 2012/13, the threshold has been raised from £50,000 to £60,000; the band of income

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