Finance (No. 2) Bill 2024 was published on 13 March 2024 and runs to 24 substantive clauses with no schedules. The Bill will reimpose the annual taxes (to ensure income tax and corporation tax can continue to be charged and collected) and includes many of the Spring Budget 2024 announcements.
The following will apply from April 2024:
increasing the high income child benefit charge thresholds;
reducing the higher rate of CGT on residential property gains;
restricting the scope of agricultural property relief and woodlands relief to property located in the UK;
introducing the new higher rate of expenditure credit for low-budget films with a UK connection; and
increasing the amount of the economic crime (anti-money laundering) levy for the highest revenue band.
The Bill will also:
set the rates of theatre, orchestra and museums/galleries exhibition tax relief at permanent higher rates;
introduce the Energy Security Investment Mechanism;
give the Treasury powers to introduce tax rules for reserved investor funds;
abolish SDLT multiple dwellings relief from 1 June 2024, with other SDLT changes applying from 6 March 2024;
target avoidance which uses close company structures to sidestep the transfer of assets abroad rules;
make three relatively minor changes to VAT legislation; and
update HMRC’s powers relating to the tax treatment of assets transferred from a collective money purchase scheme which is being wound up.
The Bill does not include:
legislation implementing extension of the Energy (Oil and Gas) Profits Levy by 12 months;
the reform of the non-domicile regime;
UK legislation to introduce the Pillar Two under-taxed profits rule (UTPR) which had been previously confirmed would come into effect from 1 January 2025; and
details on abolishing the Furnished Holiday Lettings rules.
Finance (No. 2) Bill 2024 was published on 13 March 2024 and runs to 24 substantive clauses with no schedules. The Bill will reimpose the annual taxes (to ensure income tax and corporation tax can continue to be charged and collected) and includes many of the Spring Budget 2024 announcements.
The following will apply from April 2024:
increasing the high income child benefit charge thresholds;
reducing the higher rate of CGT on residential property gains;
restricting the scope of agricultural property relief and woodlands relief to property located in the UK;
introducing the new higher rate of expenditure credit for low-budget films with a UK connection; and
increasing the amount of the economic crime (anti-money laundering) levy for the highest revenue band.
The Bill will also:
set the rates of theatre, orchestra and museums/galleries exhibition tax relief at permanent higher rates;
introduce the Energy Security Investment Mechanism;
give the Treasury powers to introduce tax rules for reserved investor funds;
abolish SDLT multiple dwellings relief from 1 June 2024, with other SDLT changes applying from 6 March 2024;
target avoidance which uses close company structures to sidestep the transfer of assets abroad rules;
make three relatively minor changes to VAT legislation; and
update HMRC’s powers relating to the tax treatment of assets transferred from a collective money purchase scheme which is being wound up.
The Bill does not include:
legislation implementing extension of the Energy (Oil and Gas) Profits Levy by 12 months;
the reform of the non-domicile regime;
UK legislation to introduce the Pillar Two under-taxed profits rule (UTPR) which had been previously confirmed would come into effect from 1 January 2025; and
details on abolishing the Furnished Holiday Lettings rules.
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