The Chancellor announced his Spring 2024 Budget, no doubt with one eye on the upcoming General Election. He did not announce any major policy changes, leading to speculation that there may be a further mini-Budget before voting day. Time will tell if any significant tax changes are announced in the coming months, but Alec James meanwhile provides a summary of the key points from Jeremy Hunt’s latest address at the dispatch box

Tax rates and bands

As in in the last few Budgets, income tax rates and lower tax brackets remain unchanged for 2024-25.

The exception, of course, being that, from 6 April 2024, the additional rate of income tax now takes effect with earnings over £125,140 – previously £150,000.

It had already been announced in the January 2024 Scottish Budget that the additional rate of tax would be increased from 45% to 48%.
The personal allowance, which was last increased from 6 April 2021, remains unchanged.

Many have seen that while there has been no increase in the tax rates, the freezing of the bands and personal allowances at a time when inflation has been running far higher than it has in the past means taxpayers are subsequently worse off.