Spring Budget 2024 - What It Means To You.

The Spring Budget 2024, announced yesterday, has introduced several changes that could have a significant impact on your strategies and investment outcomes.

Here's a detailed summary:

Reduction in Capital Gains Tax: A notable highlight is the decrease in the higher rate of property Capital Gains Tax from 28% to 24%. This tax applies when you make a profit from selling properties that are not your primary residence, such as buy-to-let properties, business premises, or inherited properties.

The aim is to stimulate more transactions by lowering tax rates, potentially boosting tax revenues and providing landlords with an opportunity to reassess their portfolios with slightly less tax burden.

Abolition of Holiday Lettings Tax Regime: In an effort to address the shortage of long-term rental properties, the furnished holiday lettings tax regime has been scrapped. This change will impact holiday landlords but aims to make more properties available for permanent residents, especially in tourist-popular areas.

Elimination of Multiple Dwellings Relief for Stamp Duty: Additionally, the Spring Budget has done away with Multiple Dwellings Relief, which benefited landlords purchasing multiple residential properties simultaneously.

Initially introduced to ease barriers in property investment, the removal of this relief is expected to mainly affect major institutional landlords rather than most buy-to-let landlords, as the latter typically purchase rental properties individually.

Commitment to Building One Million Homes: The government has reaffirmed its commitment to building one million homes by the end of this Parliament, allocating £242 million to new housing initiatives. This ambitious target aims to alleviate the housing shortage, potentially creating new investment and development opportunities in the property sector.

Financial Relief Measures: The budget introduces significant financial reliefs that could have a broader impact on property affordability and the market overall. Notably, a 2p reduction in National Insurance contributions, lowering it to 8% of pay, aims to alleviate the historically high tax burden, benefiting homeowners, potential home buyers, landlords, and tenants in Kent. These changes collectively aim to increase disposable income and make property investments and maintenance more affordable.

These strategic updates present a combination of challenges and opportunities for those involved in Kent's property market. From tax adjustments affecting investment returns to broader economic measures influencing property affordability, it's essential to stay informed and consider how these changes can be leveraged to benefit the local property landscape.

Let's engage in discussions, share insights, and navigate these developments to enhance our property community.

Thanks,

Lee & Matthew