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UK Government 2024 Spring Budget: How It Impacts Scotland

In addition to the abolition of the FHL tax regime affecting self-catering properties in Scotland, here are the other main takes from the publication of the UK Government’s Budget this afternoon:

  • The Office for Budget Responsibility predicts the UK economy to grow by 0.8% this year and 1.9% next year, with growth of 2% predicted for 2026, with 1.8% in 2027 and 1.7% in 2028
  • The UK’s inflation rate is forecast to fall below 2% target “in just a few months’ time”
  • The main rate of employee National Insurance will be cut by 2p in the pound for employees and the self-employed from 6 April 2024
  • The VAT threshold is to rise from £85,000 to £90,000 to support small business
  • A £5,000 UK ISA tax allowance for savers investing in “UK-focused” shares will be established
  • Investment Zones will be extended from five to ten years in Scotland and Wales
  • The freeze on alcohol duty will continue until February 2025
  • Fuel duty will also be frozen for another year and the planned inflation increase cancelled
  • Air passenger duty for business class flights will increase but for those in economy – flying domestic or short-haul – rates will remain frozen
  • The windfall tax on oil and gas will be extended to 2029
  • The so-called ‘non-dom’ tax break will be abolished
  • There is money for “Scottish cultural regeneration” to “ensure every city in Scotland benefits from levelling up, the government will work with the cities yet to receive an allocation – Perth and Dunfermline – to invest a shared £10 million for cultural investment.”

The UK Budget in full can be accessed here: https://www.gov.uk/government/publications/spring-budget-2024/spring-budget-2024-html

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