Spring Budget 2024 – Property Taxes
The Chancellor today announced a number of changes to the taxation of property, with the key changes as follows:
Stamp Duty Land Tax (SDLT)
Multiple Dwellings Relief (MDR), which reduces the amount of SDLT payable on the purchase of several “dwellings” is being abolished on 1 June. Accordingly, SDLT will be calculated on each property transfer separately for any transaction that completes after 1 June (unless contracts were exchanged on or before 6 March).
Capital Gains Tax (CGT)
The higher rate of CGT on property disposal on or after 6 April 2024 is being reduced from 28% to 24%. This rate is currently chargeable on sales made by higher or additional rate taxpayers, and by trustees or personal representatives of those who have died.
For the avoidance of doubt, the lower rate on such disposals will continue to be 18%, and the standard rates of CGT continue to be 10/ 20%.
Second home owners
In a measure widely leaked before Wednesday’s announcement, the Chancellor will be abolishing the Furnished Holiday Letting regime with effect from 6 April 2025. This provides income tax relief to those who rent out second homes for short-term holiday lets.
Rent received on these properties will therefore be taxed as per the standard property income tax rules from next April.
