The 2024 Spring budget was recently delivered by the UK Government. The budget sets the nation’s financial trajectory for the future, with this most recent one being hailed as a long-term plan for financial growth.
With the cost-of-living crisis still ongoing, such an announcement is hugely important and majorly anticipated across the UK.
This year’s budget introduced several changes that will impact landlords greatly. Here, we’ve summarised the key points that every landlord should know:
Introduced back in 2011 to incentivise investment in multiple residential properties, the new budget has abolished this decade-old tax relief scheme.
Multiple dwellings relief sought to provide a discount on stamp duty when buying more than one property in a single transaction. The Chancellor has scrapped the scheme starting from 1st June 2024.
Any deals that take place on, or prior to, 6th March 2024 will still benefit from the scheme, in addition to any transactions taking place before 1st June 2024.
Despite the multiple dwellings relief scheme being revoked, the Government has introduced a surprise measure to provide further tax relief to landlords that sell on.
Currently, capital gains tax is set at a rate of 28% at the higher end. This rate is being slashed to 24%, with a potential objective being to stimulate more transactions in the market and to generate more tax revenue for the nation.
At present, there are tax advantages in place for landlords that let out their property as a furnished holiday let.
The furnished holiday lets regime currently allows landlords to deduct all of their mortgage interest payments from the rental income earned on holiday lets, while also allowing them to pay less capital gains tax when they sell a property.
As of April 2024, this scheme will be abolished. This means that landlords will no longer need to report their income separately when dealing with holiday lets, while also removing the tax advantages.
Landlords, we’re here for you. With changes happening every so often through things such as budgets and legislation alterations like the renter’s reform bill, there can be a lot to keep track of.
Visit our landlord insights hub for more information and updates relevant to you.