The Chancellor of the Exchequer, Jeremy Hunt, has presented the Spring Budget for 2024. There are five key areas with most relevance to property professionals. We’ve outlined a summary of the main points in the following sections:
- Tax Adjustments Impacting Landlords:
The abolition of the furnished holiday lettings tax regime could potentially result in an average loss of £2,835 for holiday landlords. This measure aims to address the shortage of rental properties available to local residents. - Reduction in Capital Gains Tax:
Property Capital Gains Tax for higher rate taxpayers is set to decrease from 28% to 24%, impacting landlords and the buy-to-let market. - Commitment to Housing Development:
The government has reiterated its pledge to construct one million homes by the end of the Parliament, allocating £242 million towards new house building. - VAT Threshold Increase Benefits Small Agencies:
Plans to raise the VAT registration threshold from £85,000 to £90,000 will particularly benefit smaller business owners, including independent agencies. - Additional Announcements Affecting PRS Individuals:
• National Insurance contributions have decreased by 2p, from 10% to 8% of pay.
• Fuel duty remains unchanged at 53p per litre, providing an annual saving of approximately £50 for average car drivers.
• Focus on clean energy is emphasised, with intentions to have 25% of homes running on nuclear energy by 2050.
In Summary:
The Spring Budget 2024 introduces several pivotal changes for the property industry. Moreover, Stamp Duty Land Tax adjustments aim to support first-time buyers, while reductions in the business rates multiplier offer relief to various businesses.
Additionally, the government has introduced a new tax targeting developers who hoard land, aiming to expedite development and increase housing supply. Infrastructure improvements are also prioritised, with funding allocated for brownfield land development and town centre revitalisation.
In essence, the Spring Budget 2024 presents both opportunities and challenges for property professionals. Staying abreast of these changes and adapting strategies accordingly will be essential for navigating this evolving landscape effectively.
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