2024 autumn budget: key highlights for property investors

Yesterday Chancellor Rachel Reeves presented Labour’s first budget in 14 years.

The Chancellor’s autumn statement saw £40 billion of tax increase, as well as further health and defence spending amongst other costs, and a rise in the National Minimum Wage.

Meanwhile, policies set to impact property owners will shape the real estate landscape over the next parliament. This blog examines some of the key takeaways.

Increase in Stamp Duty Land Tax for second homes

Stamp Duty Land Tax (SDLT) is paid on all property purchases over a certain price threshold n the UK.

How much you will pay depends on the cost of your property and how many you own.

While the chancellor did not mention an extension to the current SDLT relief for first-time buyers and single property owners, she did declare an immediate increase in the Stamp Duty payable on second properties. Under current rules, a buyer will owe 3% more Stamp Duty on second or other properties than someone buying only one home. As of 31^st October, this has now increased to 5%.

Moving soon? Find out how much stamp duty you will pay with our stamp duty calculator:

Capital Gains Tax explained

Under current rules, you won’t have to pay Capital Gains Tax (CGT) if

• Your current property is the only one and you have lived in it for the entire time you have owned it
• The property has not been either partially or fully let
• You have not used part of your home for business purposes

The budget introduces an increase in Capital Gains Tax for non-residential assets, like stocks and shares, with the base rate rising from 10% to 18% and the upper rate from 20% to 24%. These changes apply specifically to non-property investments, while CGT rates for residential property remain the same.

Investment in affordable housing

Yesterday the Chancellor made a significant commitment of £500m investment in the Affordable Homes Programme, with over £3bn and further support for small housebuilders in a bid to improve the supply of housing in the UK.

No changes to Inheritance Tax

Inheritance tax (IHT) is paid on assets inherited when their original owner has passed away, including savings, property and investments.

Currently the first £325,000 of an estate is exempt from IHT, and £500,000 when the estate includes a residence passed down to direct descendants. The previous Prime Minister Rishi Sunak introduced a freeze on these thresholds until 2028, and in yesterday’s budget Chancellor Reeves extended that threshold to 2030.

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