Spring Budget 2024 Expectations with Simon & Co
28 February 2024
On 6th March, 2024, at 12:30 pm, Chancellor Jeremy Hunt is scheduled to present the Spring Budget, an announcement that arrives at a crucial time for the UK. With the general election looming and the country navigating its way through a recent recession, this budget is more than just numbers; it’s about setting a path forward.
What’s on the Chancellor’s agenda? Can we expect adjustments in taxes or perhaps an increase in spending to kickstart economic recovery? This budget is pivotal, not just for the government’s economic strategy but for everyone from business owners to families, all waiting to see how it might influence their financial futures.
Income tax adjustments
Times have been tough, and while sweeping tax cuts might not be on the cards, we’re looking at possible tweaks to personal allowances and tax thresholds. These changes could mean a bit more in your pocket at the end of the month, encouraging spending and helping to boost the economy. It’s all about finding the right balance.
Dividend and capital gains tax (CGT)
For those invested in the market or running their own businesses, the expected halving of the dividend allowance and CGT exemption is causing some worry. Will these reductions stay, or might we see a last-minute change of heart? The government’s approach here will signal its stance on supporting investment versus maintaining a tight fiscal ship.
Inheritance tax (IHT) reforms
There’s been a lot of talk about shaking up IHT, from potentially scrapping it to tweaking allowances and rates. Any changes here could have big implications for how you plan for the future, making this an area to watch closely. It’s unlikely we’ll see a complete overhaul right before an election, but adjustments to make things a bit fairer could be on the horizon.
Lifetime ISA and housing initiatives
First-time homebuyers, take note: improvements to the Lifetime ISA and new housing initiatives could be a boon, making it easier to get on the property ladder. These measures are key to addressing the UK’s housing challenges and ensuring everyone has a chance at owning a home.
Corporate tax and capital allowances
With recent shifts in the corporate tax landscape, businesses are looking for stability. Further support for green investments through capital allowances could be a win-win, driving sustainable growth while aligning with environmental goals.
VAT and SME support
For small and medium-sized enterprises, any increase in the VAT registration threshold could be a breath of fresh air, reducing paperwork and fostering growth. Plus, adjustments in VAT rates for green sectors would underscore a commitment to sustainability.
Child benefit adjustments
Expected changes to the child benefit system aim to iron out some longstanding kinks, making it fairer for families across the board. This could mean adjusting income thresholds or setting a cap based on household income, ensuring support goes where it’s needed most.
Keeping you informed on the Spring Budget 2024
As we approach the Spring Budget, the anticipation is palpable. This isn’t just about the numbers; it’s about the impact on everyday lives and the direction we’re heading as a country. Simon & Co will be right there with you, breaking down the budget’s key points into clear, actionable insights. Keep an eye out for our follow-up article, where we’ll dive into what the Spring Budget means for you. In the meantime, get in touch if you have any concerns for your and your business.
