Spring Budget 2024 Summary

Chris Broome – Chartered Financial Planner


National Insurance Contribution (NIC) rates

The following was announced:

  • The main rate of Class 1 employee NICs will be reduced by 2p from 10% to 8% from 6 April 2024. This is in addition to the 2p cut announced at Autumn Statement 2023 with effect from 6 January 2024.
  • The main rate of Class 4 NICs, paid by self-employed earners, will be reduced by 3p from 9% to 6% from 6 April 2024. This replaces the cut to 8% announced at Autumn Statement 2023.
  • The government will launch a consultation later this year to deliver its commitment to fully abolish Class 2 National Insurance. This follows the announcement at Autumn Statement 2023 that from April 2024 no self-employed person will be required to pay Class 2, whilst those who pay voluntarily will continue to be able to do so to build entitlement to contributory benefits.

High income child benefit charge

The government will raise the threshold for the High Income Child Benefit Charge from £50,000 to £60,000 from 6 April 2024, and there will be a tapered charge between £60,000 and £80,000. The government will also consult on moving to a household based system rather than one based on individual incomes from April 2026.

Non-domiciled individuals

The government will abolish the current tax regime for non-UK domiciled individuals and replace it with a residence-based regime:

  • From 6 April 2025 the government will introduce a new residence based regime.
  • Under the new regime, anyone who has been tax resident in the UK for more than four years will pay UK tax on their foreign income and gains, regardless of their domicile status, with a four-year relief for new arrivals (provided they have been non-tax resident for the last ten years).
  • Transitional arrangements for existing non-doms claiming the remittance basis will include an option to rebase the value of capital assets to 5 April 2019 and a temporary 50% exemption for the taxation of foreign income for the first year of the new regime (2025-26).
  • The government will also introduce a two-year Temporary Repatriation Facility for individuals who have paid tax on the remittance basis prior to 6 April 2025 to bring previously accrued foreign income and gains into the UK at a 12% rate of tax.
  • Eligible employees will also be able to claim Overseas Workday Relief in their first three years of tax residence for income from employment duties carried out overseas.
  • The government also intends to move to a residence based regime for Inheritance Tax and will consult in due course on the best way to achieve this. No changes to IHT will take effect before 6 April 2025.

Capital gains tax

The government will reduce the higher rate of Capital Gains Tax on residential properties from 28% to 24% from 6 April 2024. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.

Furnished holiday lettings

The government abolished the Furnished Holiday Lettings tax regime from 6 April 2025.


The government intends to bring forward requirements for Defined Contribution pension funds to publicly disclose the breakdown of their asset allocations, including UK equities. The Financial Conduct Authority (FCA) will consult on this in due course. The government will introduce equivalent requirements for Local Government Pension Scheme Funds in England and Wales, potentially, as early as April 2024. Further measures may then be announced if the data does not demonstrate that UK equity allocations are increasing. In addition, the government is working with the FCA and pension regulator on the Value for Money pension framework. The framework will highlight where pension schemes are focusing on short-term cost savings at the expense of long-term investment outcomes. Where persistently poor outcomes for savers are found the FCA and The Pension Regulator will have regulatory powers to intervene.

UK ISA and British Savings Bonds

The government has announced the launch of a new UK ISA and British Savings Bonds.  The UK ISA will be a £5,000 allowance in addition to the existing ISA allowance and will be a new tax-free product for people to invest in UK-focused assets. The British Savings Bonds will be delivered through National Savings and Investments and will be launched in April 2024. This product will offer a guaranteed interest rate, fixed for three years, increasing the savings opportunities available to consumers.


The government announced that the hourly rate childcare providers are paid to deliver the “free” hours offered for children aged nine months to four years will increase in line with the metric used at the Spring Budget for the next two years.

Transfer of Assets Abroad

The government will legislate in the Spring Finance Bill 2024 to ensure individuals cannot use a company to bypass anti-avoidance legislation, known as Transfer of Assets Abroad (ToAA) provisions, in order to avoid UK income tax. The changes will take effect for income arising to a person abroad from 6 April 2024.


Please get in touch if you have any questions about what the Budget means for you or your financial plans.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.