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Spring Budget 2024: VAT & SDLT Updates

by Berthold Bauer on March 6, 2024

The Budget focused heavily on boosting growth for SMEs, productivity funding across the public sector and rate changes in various credits and personal taxes, which left little room for VAT & SDLT announcements. However, we have cut through these for you and summarised those specific to VAT & SDLT below.

VAT

VAT Registration Threshold Increase

Effective April 1 2024, the VAT registration threshold will increase from £85,000 to £90,000, with the deregistration threshold rising from £83,000 to £88,000. This is expected to provide relief for over 28,000 businesses in 24/25.

VAT Retail Export Scheme

The review of the VAT Retail Export Scheme is ongoing and the Government is still considering industry representations and data before making any decisions.

VAT Treatment of Private Hire Vehicles

A consultation on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC is set to be launched in April, with a focus on ensuring the private hire vehicle sector and its passengers are not unduly affected.

Stamp Duty Land Tax (SDLT)

Multiple Dwellings Relief

Effective June 1 2024, the Government will abolish Multiple Dwellings Relief for SDLT. However, property transactions with contracts exchanged on or before March 6 2024, as well as any other purchases completed before 1 June 2024, will still benefit from the relief.

Acquisitions by Registered Social Landlords and public bodies

Effective March 6 2024, property acquired by registered providers of social housing in England and Northern Ireland will be relieved from SDLT obligations when acquiring property with a public subsidy. Additionally, public bodies will no longer be subject to the 15% anti-avoidance rate of SDLT.

First-Time Buyers’ Relief for nominee purchasers

Effective March 6 2024, individuals buying a leasehold residential property through a nominee or bare trustee will be able to claim this relief also.

Tax Administration and Maintenance Day

On April 18 2024, the Government will unveil further tax administration and maintenance announcements on this date.

 

If you have any questions on these, please either reach out to your dedicated VAT consultant or email us at VAT@bbvat.co.uk to discuss the implications of these announcements further.

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Berthold BauerSpring Budget 2024: VAT & SDLT Updates

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