The first major announcement from Jeremy Hunt came with confirmation that the current freeze on alcohol duty will continue until February 2025. The freeze which was first announced during the autumn statement was set to expire in August 2024 but has now been extended until next year. This freeze was designed to help protect breweries, distilleries, restaurants, nightclubs and bars against increasing wholesale costs pricing businesses out of the market.
Speculation around the ‘British ISA’ has been confirmed today, with the announcement from the Chancellor that a new tax-free ISA will be available to investors who wish to invest up to £5,000 per year in UK firms. The aim of this is to encourage more investment in UK-listed businesses which will allow individuals to make further tax-free investments in addition to their existing ISA allowances.
Today, as expected by many, Jeremy Hunt has announced a new tax on vape products and has also announced an increase in tobacco duties. This new vape tax won’t come into force until October 2026.
Property owners who let out properties as holiday homes will see a change to the amount of earnings they are taxed on. The higher rate of property capital gains tax will be reduced from 28% to 24%, calling an end to the holiday lettings tax relief scheme.
In the recent Autumn Statement, the treasury announced a cut to national insurance contributions. In today’s budget, Jeremy Hunt announced that from April 2024, national insurance contributions will be reduced from 10% to 8% for employees, and from 8% to 6% for self-employed workers.
It has also been announced that there will be no changes to the existing income tax threshold or personal allowances. The basic rate tax of 20% will continue to start at earnings over £12,570.
For business owners specifically, the treasury has announced that the VAT registration threshold will be increased from £85,000 to £90,000 meaning that businesses can earn slightly more before becoming VAT registered. The Chancellor also announced an extension to the Recovery Loan Scheme until the end of March 2026. The scheme, which is set to be renamed as the 'Growth Guarantee Scheme' will offer SME's a 70% government guarantee on loans of up to £2m in Great Britain and £1m in Northern Ireland.