RCK Partners 2024 Spring Budget Summary

RCK's Spring Budget 2024 round-up summary. Today in Parliament, Chancellor Hunt took to the despatch box, to deliver the Spring Budget. Hunt's initiatives for the UK economy echo the predictions made by Lord Hammond at our March Budget predictions event, last Wednesday, with enhancing productivity within the UK as a core focus of Hunt's plans.
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RCK's Spring Budget Summary

Today in Parliament, Chancellor Hunt took to the despatch box, to deliver the Spring Budget. Hunt's initiatives for the UK economy echo the predictions made by Lord Hammond at our March Budget predictions event, last Wednesday, with enhancing productivity within the UK as a core focus of Hunt's plans. In his own words, Hunt says his policies mean 'more jobs, more investment and lower taxes.'

Although many measures outlined by Hunt, relate to personal tax, including the popular reduction of national insurance, which was cut by a further 2%, capital gains tax reduced by 4% to higher rate CGT, the sustained freeze in fuel duty, and the freeze on alcohol duty which has been continued to 2025, there were additionally key updates in relation to our business operations.

Capital Allowances

Full expensing being made permanent

Continuing from the announcement of Capital Allowances full expensing being made permanent in the Autumn statement, Mr Hunt confirmed in the March Budget that the legislative changes to action this are in place, and have extended the full expensing regime to cover lease purchases. Through this measure, substantial cash flow advantages are generated for UK businesses' investments into equipment and machinery, allowing eligible companies to claim back £0.25 in corporation tax for every £1.00 spent on qualifying capital expenditure.

In light of this, it has become increasingly crucial for companies to ensure accuracy in their Capital Allowances claims, especially when acquiring buildings or undertaking intricate development projects. Properly classifying the claim as either related to buildings or plant and machinery is essential, as this differentiation holds the potential to elevate client tax relief savings from 3% to a substantial 100%.

FHLs regime to be abolished

The Furnished Holiday Let scheme (FHLs), is being abolished from April 2025. This makes it important to utilise this scheme before it is discontinued to secure any relief whilst it is still available. 

SDLT Relief

Hunt has scrapped stamp duty's multiple dwellings relief. This was formerly applicable to those who purchase more than one dwelling in a single transaction as he claimed the initiative was benefiting the wrong people most, and had the potential for abuse. 

Business Rates Relief

Within Business Rates,

the rates mitigation landscape has been amended, typically you would only need to occupy a property for a period of 6 weeks before obtaining additional relief, however this period has been extended to 13 weeks before you can receive any additional relief. In addition, Hunt announced his plans to support eligible film studios in England with a 40% reduction on their gross business rates.

R&D Tax Relief

Although R&D wasn't motioned in the budget, the commencement date for the merged scheme to come into force was set by statutory instrument earlier in the week and is for accounting periods starting after 1st April 2024.

Hunt's other measures to fuel economic growth which may be of interest to some of our clients due to the innovative industries in which they operate are as follows:

Life sciences:

The government will continue to support this sector to develop the medicine manufacturing field within the UK. Hunt pledged to invest £45 million into the industry including funding for research into cancer, dementia, and epilepsy.

Clean energy:

Hunt pledged to support businesses who are involved within the clean energy sector including green tech and nuclear by allocating £120 million more to this cause.   

Advanced manufacturing:

The government has announced investment to the tune of a further 270 million into innovative new automotive and aerospace R&D projects to build the UK's capabilities in zero-emission vehicle and clean aviation technologies.

Please reach out to utilise our expertise.  

To read the full Spring Budget Summary policy paper please see linked

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