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Spring Statement 2024

The Chancellor Jeremy Hunt has unveiled his Spring Statement for 2024, a ‘budget for long term growth’. Key initiatives introduced encompass the abolition of the non-domiciled regime, the increase in the VAT registration threshold, the reduction of the Capital Gains Tax on residential property and the reduction of the

National Insurance Contributions.

We have highlighted below the key tax measures announced yesterday.


 Non-UK domiciled regime:

The current tax regime for non-UK domiciled individual has been abolished and from April 2025 it will be replaced by a residence-based system. Under the new regime, there will be no UK tax on any foreign income and gains arising in their first four years of tax residence. After the 4-year period, non-UK domiciled individuals will pay the same tax on their foreign income and gains as other UK residents regardless of their domicile status. As part of the reform, transitional arrangements will be introduced for existing non-UK domiciled claiming the remittance basis of taxation.

Capital Gains Tax on property:

From 6 April 2024 the higher rate of Capital Gains Tax for residential property disposals will be reduced from 28% to 24%. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.

Furnished Holiday Lettings:

From 6 April 2025 the furnished holiday lettings regime will be abolished with the aim of eliminating the tax advantage for landlords who let short-term furnished holiday properties over those who let residential properties to longer-term tenants.


A new ‘British’ ISA will be introduced in the form of an extra £5,000 tax-free allowance for the public to invest exclusively in UK assets. This is on top of the existing £20,000 allowance.

Child benefit:

A reform of the child benefit system based on household rather than individual will be introduced by April 2026. As a more imminent help, from 6 April 2024 the high income child benefit charges will be raised from £50,000 to £60,000. The top of the taper at which it is withdrawn will go up from the current £60,000 to £80,000.

National Insurance

Employee’s National insurance: 

On top of the 2p cut reduction announced at the Autumn statement 2023, the Employee’s Class 1 National Insurance main rate will be reduced by another 2% from 10% to 8% from April 2024.


A further reduction of class 4 National Insurance will be introduced from April 2024. The Class 4 National Insurance will be cut from 8% to 6%.


 Alcohol and tobacco duty:

Alcohol duty freeze, introduced with the Autumn Statement 2023, has been extended from 1 August 2024 until 1 February 2025. Meanwhile, a new levy on vaping will be introduced from October 2026 along with one-off increase in tobacco duty.

Oil and gas:

The windfall tax on oil and gas companies will - as we expected - be extended for another year until March 2029.

Creative industries: 

New tax reliefs for creative industries has been announced. This includes a 40% relief on gross business rates for eligible film studios in England for the next 10 years; introducing a new UK Independent Film Tax Credit; and 5% increase in the rate of tax credit for visual effects in film and high-end TV and removal of the 80% cap for visual effects costs in the Audio-Visual Expenditure Credit. A permanent extension will be made to tax relief for theatres, orchestras, museums and galleries.

Capital allowances:

Draft legislation on an extension of full expensing to assets for leasing to be published shortly. Full expensing will be extended to assets for leasing when fiscal conditions allow.

VAT & Stamp Duty Land Tax 

VAT Registration: 

The threshold for VAT registration will go up from £85,000 to £90,000 from 1 April 2024. This is the first increase in seven years.

Stamp Duty Land Tax: From 1 June 2024 the multiple dwelling relief for people buying more than one dwelling is being abolished. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before 1 June 2024.

7 March 2024

Contacts: If you would like to discuss anything in further detail or any issue affecting your business, then please do not hesitate to contact Michela Leonetti ( or your usual ACT contact.



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