Stamp duty land surcharge increases in budget

The Chancellor Rachel Reeves has announced a range of property tax measures in the Budget.

In a measure likely to deter new landlords and make existing landlords reconsider their position, Chancellor Rachel Reeves announced in her budget that the stamp duty land surcharge on additional homes – which includes buy to let properties and holiday properties – will increase from 3% to 5% from midnight tonight (30 October 2024).

The Chancellor also announced an increase in Capital Gains Tax for non-residential assets from 10% to 18% at its lowest rate and from 20% to 24% for the higher rate. However, there is no change to Capital Gains Tax for residential property – which has existing rates of 18% and 24%.

The Inheritance Tax threshold, which was frozen until 2028 by the previous Conservative government, will be extended until 2030, meaning that the first £325,000 of any estate can be inherited tax-free.

Other measures related to housing announced in the budget includes a boost to the affordable homes budget of £500m, which runs until 2026 and social housing providers will now be allowed to increase rents above inflation under a multi-year settlement.

These are all part of what Reeves admitted would be a Budget with tax rises and spending cuts to the total of £40 billion.

If you have any questions regarding the budget and what this means for you as a landlord, please contact one of our specialist lettings team via our contact form or call 0161 511 5339.