2024 Budget - How will it effect Landlords?

Capital Gains Tax is a tax on the profit made from the sale of particular assets, including property. This Tax applies when landlords sell a rental property for more than they paid for it. The announcement regarding Capital Gains Tax in the 2024 Budget from Rachel Reeves confirms the rise of capital gains tax on second homes.

The lower rate of Capital Gains will increase by 8%, from 10% to 18%, while the higher rate will increase by 4%, from 20% to 24%. Landlords holding their properties under a limited company the rate will be increasing from 18% to 24%.

These increases will make it more expensive for Landlords to sell their buy-to-let properties. Landlords who were considering selling their properties might now consider holding off to avoid these additional costs which would help the rental market as the last thing we need now after the recent price increases, is a shortage of houses which would push the prices up again.

Stamp Duty is a tax imposed by the Government on legal documents related to the transfer of property or land. The announcement on English Stamp Duty on Wednesday means anyone who plans to buy a second home in England will be affected by a rise from 3% to 5% on Stamp Duty, which is effective from the 31st of October 2024. This currently applies to all purchases of second homes, buy to lets and a limited company. This is yet to be confirmed in Wales…...