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Explore key highlights from the UK Spring Budget 2024, presented by Chancellor Jeremy Hunt on March 6, 2024. The budget encompasses a spectrum of fiscal adjustments.

The Energy Profits Levy takes center stage with an extension until March 2029, coupled with legislation plans to conclude it based on oil and gas prices and thresholds set by the Energy Security Investment Mechanism (ESIM). The creative sector receives additional tax reliefs, including a confirmed 39% tax credit rate for visual effects costs under the Audio-Visual Expenditure Credit.

In business taxation, full expensing and a 50% first-year allowance for special rate assets become permanent, with a focus on potential extensions to include plant and machinery for leasing. R&D tax reliefs undergo transformation with the establishment of an expert advisory panel by HMRC, focusing on sectors like technology and life sciences.

Personal taxes witness changes, including reductions in National Insurance Contributions (NIC) rates and a shift to a residence-based system for non-domiciled individuals from April 6, 2025. The High-Income Child Benefit Charge undergoes modifications, and the pension landscape sees proposed disclosure requirements and the development of a Value for Money pension framework. Non-compliance is targeted with legislation addressing asset transfers through the Transfer of Assets Abroad (ToAA) provisions. Overseas Workday Relief (OWR) sees reforms, and the Furnished Holiday Lettings tax regime faces abolition from April 6, 2025.

Indirect taxes witness adjustments, with changes to VAT registration and deregistration thresholds, a freeze in alcohol duty rates, and an extension of fuel duty rates. A new duty on vaping products is set for introduction from October 1, 2026, with varying rates based on nicotine content. Air Passenger Duty sees adjustments, and the VAT Retail Export Scheme for GB experiences no immediate changes. Landfill Tax rates for 2025-26 are adjusted to align with the actual Retail Price Index (RPI). A singular adjustment to tobacco duty is scheduled for October 1, 2026, entailing a £2 increment per 100 cigarettes or 50 grams of tobacco. The Carbon Border Adjustment Mechanism (CBAM) is slated for implementation from January 1, 2027. The VAT Terminal Markets Order undergoes revisions, and a new UK ISA with a proposed £5,000 additional allowance is introduced for investment in UK equities. The sunset date for freeport special tax sites is extended, with further tax administration and maintenance announcements expected on April 18, 2024.