The Office for Budget Responsibility (OBR) is set to deliver crucial fiscal and economic forecasts in preparation for the Spring Budget. This announcement is highly anticipated, as it will reveal the UK Government’s strategies for strengthening the nation’s economy and public finances for the fiscal year 2024-25.
The upcoming Spring Budget carries added significance as it sets the stage for the election year in the UK. Among the speculated moves by the Chancellor is the implementation of tax cuts. These cuts are seen as a strategic move to boost voter confidence and spending power as the nation approaches the polls.
Key Expectations for the Spring Budget 2024:
- The ongoing rise in house prices, coupled with stagnant inheritance tax thresholds, is likely to result in more taxpayers facing inheritance tax on their estates. There’s a strong possibility that the Government might reform or entirely abolish inheritance tax, potentially raising tax-free thresholds or removing the tax to appeal to core Conservative voters.
- Reflecting on Rishi Sunak’s 2022 pledge during his Conservative leadership campaign, a reduction in the basic rate of income tax might be on the cards. Alternatively, there is speculation that increasing the personal income tax allowance might be a more equitable approach than a basic rate reduction.
- Re-evaluation of plans to further decrease the dividend tax and capital gains tax-free thresholds is expected. Any further reductions could conflict with the Government’s broader growth objectives.
Stay Informed with Cutts and Co Accountants: As the Spring Budget 2024 approaches, Cutts and Co Accountants is committed to providing you with swift and precise updates, particularly relevant to your small business.
We invite you to read our Blog regularly for a comprehensive summary delivered directly to your inbox. Stay ahead with us as we navigate these critical financial developments together.