So, would being in the dentist chair have been better than watching the budget? On the basis that most of what was announced had already been leaked and at times it was a bit like a playground, the answer may have been yes.

Also, if we have a change in government, which seems likely, measures announced by the now chancellor, may not actually come into effect.

In summary the “highlights”, if they can be called that, were as follows: –

For families and their households: –

  • The higher rate of capital gains tax that is payable on the disposal of residential property will be cut from 28% to 24%.
  • The income limit at which you will start to have to repay child benefit is increased from £50,000 to £60,000 with effect from April 2024 and from April 2026 there will be a household income-based system introduced.
  • Further cuts have been made to National Insurance with a further drop of 2% for employees and the self-employed with earnings above the primary threshold.
  • Those with furnished holiday lets currently benefit from more favourable tax treatment– this system is to be abolished.
  • Alcohol and vehicle duty is to be frozen.
  • There will be an ISA reform and the introduction of a new “British ISA” which is in addition to the current ISA allowances.

For businesses: –

  • Full expensing, which only applies to companies and allows them to write of the full cost of new plant and machinery, is to be extended to leased assets, as soon as this becomes affordable – whatever that means!!
  • Currently businesses have to register for VAT when their turnover reaches £85,000 – this threshold is to be increased to £90,000.

Other measures :-

  • There was also the withdrawal multiple dwellings relief (MDR) for Stamp Duty Land Tax, which is available when you buy more than one property. It has been the subject of many tax tribunal cases, so it is no surprise that this relief has been abolished.
  • The current tax regime for non-domiciles is to be abolished and replaced with a residency-based system. From April 2025 a non-UK domiciled will not pay tax on their overseas income for the first 4 years they are resident in the UK, but after this will be taxed on their worldwide income. Wonder where this came from?

The non domiciled measure is something which labour have said they intend to change if they get into government….so let’s wait and see !!!!

If you think you may be affected by any of these potential changes, please get in contact, bearing in mind that we may have a change in government in the coming months.