Spring Budget 2024 statement - five impacts for Real Estate and Construction

VAT registration and deregistration: From 1 April 2024, the VAT registration threshold will increase from £85,000 to £90,000. 

National Insurance contributions (NIC’s): The main rate of NICs have been reduced by a further 2 percentage points for both employed and self-employed individuals.  

Reserved Investment Fund (RIF): In 2023 the government initiated a consultation period for a new UK investment fund vehicle for professional and institutional investors (this includes UK based property funds). Legislation will be introduced in the spring finance bill and will impact how individuals invest and also how the fund is taxed and there ultimately how much of the income / gains are therefore available to the investor.  

Planning: There were several other plans announced to encourage building and development. These include 

• The government is committing £2 million to boost global investment and trade opportunities for Northern Ireland.
• A consultation will be initiated on extending full expensing to qualifying leased assets.
• The budget confirms the intention to maintain the main corporation tax rate at 25% and the small profits rate at 19%, until at least 1 April 2025, giving some certainty to both investment companies and developers
• The government has committed to building around 30,000 more new homes in the UK focusing investment specifically in Cambridge, London and Leeds.