Spring Budget 2024 – Key Points for Property Sector and Landlords

The Chancellor delivered his Spring Budget on 6th March 2024.  This is likely to be the last financial statement before the next general election which must take place before January 2025.  

Some of the key points for landlords and the property sector are detailed below:

Cut in higher rate of Capital Gains Tax for residential property disposals

The higher rate of CGT for residential property disposals will be reduced from 28% to 24%. The Government believes this will encourage landlords and second home-owners to sell their properties, making more available for a variety of buyers.

Abolishment of the Furnished Holiday Lettings Tax Regime

The Government will remove the current incentive for landlords to offer shortterm holiday lets rather than longer-term homes by abolishing the Furnished Holiday Lettings (FHL) tax regime in April 2025.

Abolishment of Multiple Dwellings Relief

From 1 June 2024, the Government is abolishing Multiple Dwellings Relief. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before 1 June 2024.  The Government will engage with the agricultural industry to determine if there are any particular impacts for the sector that should be considered further.

Non-dom tax status to be scrapped

It was announced that the non-uk domicile tax rules would be replaced with a residence based regime.

Increase in VAT registration threshold

The Budget announced further support for SMEs by increasing the VAT registration threshold from £85,000 to £90,000.

Some will be disappointed not to have heard any further reforms to Stamp Duty Land Tax, or the 99% mortgage scheme for first time buyers.