Key Facts

• HICBC thresholds increase from £50,000 to £60,000 and from £60,000 to £80,000.
• The rate at which child benefit is withdrawn will be halved from 1% for every £100 above £50,000 to 1% for every £200 above £60,000.
• The changes are expected to affect around 485,000 families, with an average gain of £1,260 per family in 2024-25.
• The Office for Budget Responsibility estimates the changes will result in a total equivalent of 10,000 full-time individuals working more hours by 2028-29.
• Reduction in the higher capital gains tax (CGT) rate for residential property gains from 28% to 24%.
• Aimed at simplifying the tax system and reducing complexity for taxpayers.
• Part of broader tax policy considerations and will be detailed further during future fiscal events.
• The higher rate of capital gains tax on residential properties is being reduced from 28% to 24% from April 6, 2024.
• Multiple dwellings relief will be abolished from June 1, 2024.
• The changes are expected to result in an additional 60,000 property transactions over the next five years and raise £690 million in revenue for the Exchequer.
• Clause 6 reduces the higher rate of Capital Gains Tax (CGT) from 28% to 24% for disposals made on or after April 6, 2024.
• The expected additional revenue from the CGT reduction is £310 million in 2024-25 and £350 million in 2025-26.
• Clause 7 abolishes Multiple Dwellings Relief (MDR) for transactions on or after June 1, 2024.
• The tax credit rate increases to 53% on up to 80% of a film’s production costs.
• The cap is about £15 million, translating into £31.80 back for every £100 spent after corporation tax.
• Films must meet the criteria of having a UK writer or director or being an official co-production.
• The current tax reliefs are set at 45% for non-touring productions and 50% for touring productions since October 2021.
• From April 2025, rates will reduce to 40% for non-touring and 45% for touring, permanently.
• The museums and galleries exhibition tax relief will become permanent with no expiry date.
• Clause 21 amends part 3 of the Finance Act 2022.
• The charge increase applies only to firms with UK revenue greater than £1 billion per annum.
• Approximately 100 to 110 very large firms will be impacted across various sectors including financial services, legal and accountancy firms.
• The Government's economic crime plan covers up to 2026 with a total funding of £400 million.
• At least £7.3 billion was stolen from UK consumer bank accounts due to fraud last year alone.
• The Online Safety Act 2023 and telecommunications fraud sector charter are being implemented to address online crime.
• Clause 22 closes a loophole identified by a Supreme Court decision.
• A close company has five or fewer participators, usually shareholders or directors.
• The clause applies to income arising after April 6, 2024.
• The measure is expected to affect a small number of individuals annually and raise £15 million in tax revenue.
• The TOAA regime is aimed at preventing individuals from avoiding a tax charge.
• The legislation aims to revert HMRC's interpretation of the regime before the Supreme Court decision.
• Further guidance will be produced by HMRC on how the new rules will be applied.
• Clause 23 makes technical changes to VAT legislation.
• The DIY house builders’ scheme allows individuals building or converting homes to recover VAT incurred, putting them in a similar position to property developers.
• Under recent reforms, claim forms require only essential details and eliminate the need for upfront evidential documents.
• HMRC can request additional documentation like invoices from claimants under Clause 23(1).
• The VAT terminal markets order reduces administration burdens on commodities traded on specified markets.
• The Finance Act 2021 harmonised VAT interest rules with other major taxes as of January 2023.
• Clause 24 authorises transfer of survivor benefits in collective money purchase pension schemes.
• It ensures transfers do not incur an unauthorised payment charge of 55%.
• The Pension Schemes Act 2021 introduced legislation for collective money purchase schemes.
• Royal Mail Group is the first provider to offer a CMP scheme.
• Thanks are extended to fellow shadow Ministers, Opposition Whip, and Back Benchers.
• The Chartered Institute of Taxation's expertise is recognised and valued.
• Appreciation is expressed towards all House authorities and staff.