Our Spring 2024 Budget Predictions

News | Tax

February 22, 2024

What can we expect in the budget?

In two weeks, Jeremy Hunt will stand up and deliver the spring budget 2024.

This will be the last budget before an expected general election.

So we can expect some tax giveaways.

Well, here’s our prediction on what we could see

There were rumours of an income tax reduction last year, but in the end, he went for a 2% reduction in national insurance.

With tax at an all-time high, we would expect something here, but how much scope is there with weak public finances?

A 1% reduction in income tax could be on the cards, bringing the rate in line with the lower level of corporation tax.

The housing market is the next area that needs a boost, with house prices stuck and far fewer sales due to the higher interest rates.

Stamp duty is a significant cost for this buying property with a 5% charge over property purchases over £250,000.

We expect to see a reduction in the rate or an increase in the threshold. Previously, a reduction in stamp duty has boosted the housing market; a temporary change could get things moving again.

Pension tax relief always seems to be in the firing line when a budget comes around, but they have been left alone so far. We would not expect any adverse changes to the rules this close to an election.

The child benefit rules are any area that may get some attention as there are several unfair aspects.

Firstly, the earnings limit beyond which you cannot receive child benefit has remained unchanged for over ten years.

Secondly, the earnings limit of £50,000 is applied to each parent, and if one earns over that amount, it starts to reduce.

So a single parent on £55,000 would lose part of their child’s benefit, but a couple earning £45,000 each would still receive the total amount.

We expect changes to be made to this.

We will have to wait and find out what happens, but this is our humble opinion.

If you need any tax planning advice, please make an appointment for a free tax review, where we will use our 144-point tax checklist. Check out our video on the subject.

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