Spring Budget 2024: Highlights

On 7 March 2024, Jeremy Hunt, Chancellor of the Exchequer, delivered the Spring Budget 2024 setting out his plans to continue working to decrease inflation, grow the economy and ensure that the tax system in the country is fair, simple and rewards hard work as the United Kingdom is still facing the legacy of the COVID-19 pandemic, the energy price spike and the globally high inflation.

Below is a summary of the key announcements for the private client world.

Inheritance Tax (IHT)

• From 1 April 2024, the IHT requirements for personal representatives (PRs) of estates who wish to obtain a ‘grant on credit’ from HMRC will be relaxed.

Capital Gains Tax (CGT) 

• A change in CGT on residential property gains has been announced.
• The rate of CGT on chargeable gains arising from the disposal of residential property will decrease from 28% to 24%.
• The change will be applicable to the disposals on or after 6 April 2024.
• The rate for basic rate taxpayers will stay at 18%.

Stamp Duty Land Tax (SDLT) 

• From 1 June 2024, the multiple dwellings relief will be abolished. The relief will still apply to any property transactions where contracts that were exchanged on or before 6 March 2024 regardless of the completion date.
• The first-time buyers’ relief from SDLT in England will be extended for purchases taking place on or after 6 March 2024. Transitional rules may apply to transactions where the exchange of contracts takes place on or before 6 March 2024.

International Aspects 

‘Non-dom’ Regime

• The remittance basis of taxation will be abolished. The country will switch to a residence-based regime.
• This will be a major change for the individuals who are resident but not domiciled in the UK (‘non-doms’), and have foreign income and gains. These individuals will not pay UK tax on any foreign income and gains arising in their first 4 years of UK tax residence as long as they have not been resident in the UK for tax purposes for the last 10 years.
• The new regime will come into effect on 6 April 2025 and will apply UK-wide.
• Transitional arrangements will apply to the existing ‘non-doms’ claiming the remittance basis.

IHT Regime 

• The IHT regime will be switched to a residence-based one replacing the current regime where IHT liability depends on domicile.
• The consultation along with the draft legislation will be published later in the year.
• No IHT changes that are supposed to take effect before 6 April 2025 have been announced.

The impact of these announcements will depend on individual circumstances. We suggest that if you have any questions or would any further advice GSC Solicitors would be delighted to be able to assist and suggest you contact James Cohen on 0207 822 2222. Or e-mail on [email protected]

Disclaimer: Rates are for guidance only. Whilst we take care to ensure the accuracy of this document, no responsibility for loss occasioned by any person acting or refraining from action as a result of this information can be accepted by the authors or fir