{"id":251044,"date":"2024-03-07T00:17:46","date_gmt":"2024-03-07T00:17:46","guid":{"rendered":"https:\/\/www.no-worries.co.uk\/?p=251044"},"modified":"2024-04-30T02:57:53","modified_gmt":"2024-04-30T02:57:53","slug":"2024-uk-spring-budget","status":"publish","type":"post","link":"https:\/\/www.no-worries.co.uk\/blog\/2024-uk-spring-budget\/","title":{"rendered":"2024 Spring Budget Updates"},"content":{"rendered":"\n

Today the Spring Budget 2024<\/a> speech was delivered by Chancellor Jeremy Hunt. Here we delve into the heart of the 2024 Spring Budget and what it means for you. As professionals navigating the complexities of the UK tax system, staying informed on governmental updates is important for optimizing your financial strategies and ensuring compliance. The recent budget announcement brought with it a raft of changes, touching on everything from Capital Gains Tax to the taxation landscape for non-domiciled<\/a> residents in the UK.<\/p>\n\n\n\n

We’ll break down these changes in a clear, concise manner, providing insights into how they might affect your financial planning and business operations. Whether you’re a sole trader<\/a>, a contractor operating through a limited company, or an individual with varied domestic and international interests, this budget has something for everyone.<\/p>\n\n\n\n

Capital Gains Tax Changes<\/strong><\/h2>\n\n\n\n

Regarding the planned changes to Capital Gains Tax, there’s an important update that will benefit property investors. From 6 April 2024, the higher rate of Capital Gains Tax<\/a> on property sales (excluding your primary residence) will be reduced from 28% to 24%. This adjustment means that when selling a property, the tax burden on the profit made from the sale will be lessened, allowing investors to retain a greater portion of their gains. This change could have notable implications for your investment strategy moving forward.<\/p>\n\n\n\n

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Non-Dom Tax Changes<\/strong><\/h2>\n\n\n\n

The latest budget has introduced several significant changes to the taxation of non-domiciled individuals<\/a> (non-doms) in the UK. These adjustments aim to both simplify the tax regime and enhance the UK\u2019s appeal as a destination for international talent. Here are the key points:<\/p>\n\n\n\n

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  1. Transitional Arrangements:<\/strong> For existing non-doms currently using the remittance basis of taxation, there’s an opportunity for a one-time revaluation of capital assets to their market value as of 5 April 2019. Furthermore, there will be a temporary 50% reduction in the tax rate for foreign income for the first year under the new system (2025-26), easing the transition.<\/li>\n\n\n\n
  2. Temporary Repatriation Facility:<\/strong> Starting before 6 April 2025, a two-year window will open allowing non-doms to bring overseas income and gains to the UK at a reduced tax rate of 12%. This initiative is designed to encourage the repatriation of gains, with the government anticipating an additional \u00a315 billion of foreign income and gains returning to the UK.<\/li>\n\n\n\n
  3. New Regime from April 2025:<\/strong> A pivotal change is the introduction of a new residence-based tax regime from 6 April 2025. This will exempt individuals from tax on foreign income and gains for their first four years of UK tax residency, provided they haven\u2019t been UK tax residents in the preceding ten years. Additionally, eligible non-doms can benefit from Overseas Workday Relief (OWR) for the first three years, pertaining to foreign employment income.<\/li>\n\n\n\n
  4. Looking Ahead – Inheritance Tax (IHT):<\/strong> The government also plans to transition IHT to a residence-based regime. Details of this change will be shaped through consultation and are aimed to be implemented no earlier than 6 April 2025.<\/li>\n<\/ol>\n\n\n\n

    These changes signal a recalibration of the UK\u2019s approach to taxing non-doms, seeking to balance fairness in the tax system with maintaining the UK\u2019s attractiveness as a global hub for talent and investment.<\/p>\n\n\n\n

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    Email us<\/a>, call us<\/a>, our even sign up online<\/a> right away. Whatever you need, we’re here.<\/b><\/p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/div>\n\n\n\n

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    PAYE Umbrella company updates<\/strong><\/h2>\n\n\n\n

    There is a clear commitment toward tackling non-compliance within the Umbrella Company market. The government highlights its dedication to protecting workers employed by umbrella companies, ensuring fair and genuine competition in the market and preventing significant losses to the Exchequer caused by tax non-compliance.<\/p>\n\n\n\n

    To address these concerns, the government has proposed the following measures:<\/p>\n\n\n\n