Here’s a brief overview of what today’s Spring Budget means for homeowners, renters, landlords, and first-time buyers.

Capital Gains Tax Rate Reduction:

  • Starting April 6, the higher CGT rate on residential property sales will be reduced from 28% to 24%.
  • The tax is charged on the profits from selling a buy-to-let or second home.
  • Basic-rate taxpayers pay 18%, with higher and additional-rate taxpayers paying 28%.
  • Everyone is entitled to an annual CGT-free allowance of £6,000 (£3,000 from April 2024).
  • The government intends to encourage landlords and second-home owners to sell their houses, thereby increasing the supply of buyers.

Stamp Duty Land Tax Adjustments:

  • No significant changes to stamp duty land tax for first-time buyers or downsizing individuals.
  • The government ends multiple-dwellings assistance in June 2024.
  • Stamp duty payment is now based on the average price of properties, not transaction cost.

Property expert, Tim Bannister, says:

 “We had hoped the government would seize the opportunity to help first-time buyers and reform the outdated stamp duty system today. Instead, home-movers were left with extremely little, and the temporary stamp duty thresholds weren’t even made permanent, meaning more will pay higher rates of stamp duty next year unless the government makes them permanent in the Autumn.”

Tax on holiday rentals:

  • Abolishing tax structure on holiday rentals from April 2025.
  • The current holiday Lettings tax structure offsets mortgage interest, CGT reliefs, and deduction of furniture costs.
  • The government aims to encourage long-term tenant rental by abolishing this.

New Home Construction Plans:

  • Administration plans to build 1 million houses, with 234,000 in 2022-23.
  • Plans to fund thousands of new houses in London.
  • Discussion on long-term development plans for Leeds and Cambridge.

Sources: Which, GOV, The Independent, Evening Standard, Rightmove