Prime Minister Rishi Sunak and Jeremy Hunt Announce Key Changes in Spring Budget

Are you curious about the latest changes in the UK’s spring budget announced by Chancellor Jeremy Hunt? From tax cuts to new policies, there are several key updates that could impact your finances. Let’s take a closer look at some of the biggest changes from the spring budget.

1. National Insurance Cut: One of the significant changes announced is a national insurance cut for employees and the self-employed. This move will save the average worker £900 a year, making the tax system simpler and fairer.

2. Stamp Duty: Stamp duty relief for people buying more than one dwelling is being abolished due to abuse. This change aims to ensure the policy is used as intended to support investment in the private rented sector.

3. Vape Duty: Vapes and e-liquids are set to incur higher taxes to discourage non-smokers from vaping. This measure will take effect in October 2026.

4. Fuel Duty Cut: The 5p cut in fuel duty has been extended for another year, saving the average car driver £50 next year. This move aims to provide relief to motorists and maintain the frozen rate for the 14th consecutive year.

5. New British ISA: A new British ISA has been introduced to encourage more people to invest in UK assets. This will allow an additional £5,000 annual investment on top of the existing £20,000 ISA allowance.

6. Child Benefit Reform: The threshold for high-income child benefit charge has been raised to £60,000, benefiting families with higher earners. The government is also consulting on changing the way child benefits are assessed.

7. ‘Non-Dom’ Tax Rules: Non-dom status will be scrapped to raise £2.7bn a year, replacing it with a modern, fairer residency system. This change will impact individuals earning money from abroad.

8. Airfare Duty: Air passenger duty on non-economy airfares will be increased to account for inflation, raising £500m in the next five years. Economy travellers will see no change in rates.

9. Household Support Fund Extended: The household support fund, which helps families via food banks and vouchers, will be extended for another six months to provide ongoing support.

10. Holiday Lets: Tax perks for landlords renting out properties to short-term holidaymakers will be abolished from April 2025. This change aims to address the growing trend of short-term lets over long-term rentals.

These changes in the spring budget reflect the government’s efforts to stimulate the economy, simplify the tax system, and support families in the UK. Stay informed about how these updates could impact your finances and future investments.