Not long ago, the UK government announced that the Spring Budget would take place on March 6, 2024.
The Spring Budget will unveil tax plans for the new fiscal year and major decisions on public service expenditures, impacting the lives and work of people in the UK.
In the UK, there are two fiscal statements each year: the Spring Budget and the Autumn Statement. Both are publicly delivered by the Chancellor, providing updates since the last statement and outlining economic plans for the next fiscal year.
Considering the possibility of a general election this year, the Spring Budget might present more enticing proposals.
List of Potential Tax Cuts:
There have been reports that the Treasury might cut income tax and increase net wages.
However, experts note the possibility is slim due to the potential economic downturn in 2024.
Specific tax cuts often depend on inflation rates and economic conditions.
Any changes to SDLT will directly impact homebuyers in the UK.
Currently, stamp duty is applicable on residential properties exceeding £250,000.
To stimulate the real estate market and encourage homeownership, there might be additional relief for first-time buyers.
Currently, assets or funds inherited over the tax-free threshold of £325,000 incur a 40% IHT.
With less than 4% of UK estates paying IHT in the 2020/21 tax year.
Further reductions or abolishment may be considered due to the relatively small group affected.
Other Potential Changes:
- Mortgages:
To assist young people in purchasing homes and boost the property market, the government may consider a plan where young individuals only need to pay a 1% down payment to unlock property.
While this plan is expected to receive significant attention and welcome, housing experts caution about the risk of soaring property prices.
These potential changes are speculative until the Spring Budget is released.
Stay tuned for further updates.
