The recent budget was likely to be one of the last the current Chancellor will give in the light of a General Election occurring before the end of 2024.
The top key takeaways from the Spring Budget for landlords include a change to the tax cuts for holiday homes and multiple dwellings meaning that holiday let landlords could lose an average of £2,835. The aim for this clampdown would be, according to the Chancellor, to avoid the “distortion of not enough properties to rent for local people.”
It was also announced that the higher rate of property Capital Gains Tax will reduce from 28% to 24%. Capital Gains Tax applies to properties when a person makes a profit on selling a property that is not their main home. Examples include when selling buy-to-let properties, business premises, land, and inherited properties.
The Spring Budget also abolished multiple dwellings relief (MDR). This was available for people who buy more than one residential property at a time. Originally introduced to minimise any barriers when investing into property, it’s likely this relief will affect larger landlords and the buy-to-let sector the most. Stamp Duty Land Tax Multiple Dwellings Relief will be abolished from 1 June 2024
