Despite previous assumptions stated from landlords, the 2024 Autumn budget (Announced yesterday 30th October) isn’t as dramatic as feared from a property perspective, Here is our round up of the main points affecting landlords:
Capital Gains Tax (CGT) Rates Held: The budget confirmed that Capital Gains Tax on residential property remains unchanged at 18% for basic rate taxpayers and 24% for higher-rate taxpayers. This decision aims to prevent further reductions in rental property availability, as increased Capital Gains Tax could have pressured landlords to sell rather than retain properties.
Increased Stamp Duty on Second Properties: The additional stamp duty surcharge on second homes and buy-to-let properties has been raised from 3% to 5%, making property acquisitions more costly for landlords. For example, a property between £250,000 and £925,000 will now attract a 10% combined stamp duty rate.
Income Tax Thresholds Adjusted: The government plans to end the income tax threshold freeze by 2028, allowing allowances to rise with inflation from that point. While this doesn’t immediately impact rental income, it signals upcoming shifts in overall tax structure.
Increased Energy Efficiency Standards: The Government is enforcing stricter energy efficiency regulations for landlords, requiring investments in upgrades like insulation, heating systems, and eco-friendly solutions such as solar panels. This aligns with the UK’s emission reduction goals, but landlords must prepare for costly improvements to meet the regulations. New regulations are expected to take effect in 2025, requiring rented properties to have a certification rating of C or above.
What are your thoughts on the budget announcements? Let us know below
