Chancellor Jeremy Hunt revealed the key points of his Spring Budget last week, with particular focus on how the changes will impact landlords, investors, and those interested in buy-to-let properties. Here is a breakdown of the important updates:

  • The higher rate of capital gains tax on property will decrease from 28% to 24% starting in April.
  • The lower rate of capital gains tax will remain at 18%.
  • The Furnished Holiday Lettings tax regime will be scrapped by April 2025.
  • Holiday let owners will no longer be able to deduct fixture and fitting costs from their income, make tax-advantaged pension contributions, or qualify for the 10% business rate when selling their property.
  • The Empty Property Relief “reset period” will be extended to thirteen weeks from April 2024 in England.
  • Multiple dwellings relief has been eliminated.

The changes to capital gains tax aim to stimulate property sales and increase revenue, while the removal of the Furnished Holiday Lettings regime is intended to boost long-term rentals for residents. The extended Empty Property Relief period is designed to discourage landlords from repeatedly claiming relief for short periods of occupation.

Overall, these updates will have a significant impact on landlords and investors, particularly those with holiday lets or multiple properties. If you are unsure how these changes will affect you or your property portfolio, it is recommended to seek advice from professionals in the industry.

To find out more and meet the professionals head to the Property Investor Show – 19/20 April 2024. London Excel

Photo by Tierra Mallorca on Unsplash