or reach out to a member of our Corporate Tax team.
Set against a backdrop of intense speculation, political manoeuvring and proximity to a potential general election, Chancellor Jeremy Hunt may need to announce bold measures in the forthcoming Spring Budget, says MALACHY McLERNON, Partner and Head of Corporate and Indirect Tax at AAB, an AAB Group company.
The Chancellor confronts a challenging balancing act – expand spending commitments while maintaining robust revenue streams. The dilemma exists in an environment where the tax burden is at a 70-year high. As the Spring Budget 2024 nears (scheduled for 6 March), so does increased anticipation regarding the potentially significant steps that it might contain.
Preliminary expectations of significant cuts to basic Income Tax are seemingly tamed by the recently revised economic forecast. Conversely, the Budget might see a marginal lowering of the basic rate. Similarly, the possibility of phasing out Inheritance Tax (IHT) has morphed into conjecture of a rate reduction from 40% to 20%.
The Spring Budget needs to address concerns regarding ‘fiscal drag,’ where inflation puts individuals into higher tax brackets. The Government is pressed to tackle issues such as revamping IR35 (off-payroll rules) and refining the VAT registration threshold. However, comprehensive changes to duties like Capital Gains Tax are not expected due to the looming elections.
Business-wise, the Spring Budget needs to foster a careful equilibrium between assisting businesses and generating revenue to execute Government initiatives. Corporation Tax saw an increase to 25% for profits surpassing £250,000 in April 2023. We may see the Chancellor retain this while refining existing reliefs and possibly introduce more to fuel growth.
Traditionally, Labour espouses progressive taxation policies that may lead to increased taxes on the affluent and companies. An emphasis on social spending and environmental sustainability could entail climate change prevention through environmental taxes and levies.
With Budget date fast approaching, the Chancellor is watched carefully. The Spring Budget must achieve a harmonious blend of fiscal responsibility, economic stability, and political strategy as it establishes the pathway for the national finances during this critical election year.
For in-depth discussions on the Spring Budget 2024, please contact MALACHY McLERNON, from our Tax Team.
How AAB can help
AAB’s Corporate Tax service supports businesses at every stage by minimising liabilities and simplifying complex tax rules - so you can focus on growth. Their team offers clear, practical advice on extracting profits, group structuring, capital allowances, loss utilisation, and managing capital gains, tailored to suit both day-to-day needs and long‑term ambitions. They’re champions for owner‑managed businesses. AAB advises on the right business structure - sole trader, company, LLP - while creating tax‑efficient strategies for profit withdrawal, succession, and exits. If you’re expanding overseas, AAB's international tax experts guide you through cross‑border structuring. They’ll help you understand global corporation tax regimes, CFC rules, tax residence, withholding taxes, double tax relief, and foreign compliance. In short, AAB cuts through tax confusion. They offer proactive planning and hands‑on support to help reduce your tax bill, streamline compliance, and support your goals at home and abroad - all delivered in a friendly, human-first way.
View our corporate tax serviceRelated services
Corporate Tax Partner
Contact Malachy McLernonor reach out to a member of our Corporate Tax team.
Blog29th Sep 2026
October could be an important month for Mid Ulster businesses. Within three weeks, two governments will set out their plans for taxation and public spending. Budget 2027 in Dublin is scheduled for 6 October, followed by the UK Government’s Autumn…
View moreBlog25th Mar 2025
With Chancellor Rachel Reeves set to deliver the Spring Statement tomorrow (26th March), business owners across Northern Ireland (NI) will be watching closely. The October 2024 Autumn Budget brought significant changes—some beneficial, others burdensome—particularly for small and medium businesses trying…
View moreBlog27th Sep 2023
With several significant tax system changes on the way like the basis reform, now is the time to check how these will affect your business. Are You Ready for the Basis Period Reform? The basis period is the accounting period…
View moreBlog25th Jul 2023
Understanding capital gains tax on property is essential when you are buying or selling properties. By familiarising yourself with the applicable rates, exemptions, and strategies to minimise tax liability, you can make informed decisions that can potentially save you money.…
View more