Taxation may have dominated the Autumn Budget, but the fiscal event did include some announcements that will impact homeowners, buyers and sellers.
Higher costs for buyers of second homes
Since 31 October 2024, people buying a second home face an extra 2% charge on the entire property cost in Stamp Duty after the 3% rate, in addition to standard residential rates, rose to 5%.
CGT for property investors
Capital Gains Tax (CGT) is charged on the sale of assets, including second homes, impacting property investors. The lower and higher main rates of CGT are 18% and 24% respectively for disposals made on or after 30 October 2024.
Greater supply of affordable housing
The Budget brought with it £500m of new funding for affordable housing. The government announced a package worth £5bn to deliver 33,000 new homes, boost supply and support small housebuilders, with several sites across the country earmarked for development. The government is also hoping to increase the supply of affordable housing by reducing Right to Buy discounts on council homes.
And remember…
Despite calls for the measure to be extended, first-time buyers (FTBs) will only benefit from a raised Stamp Duty threshold until 31 March 2025 (meaning no Stamp Duty applies on properties costing up to £425,000.) From 1 April 2025, FTBs will have to pay Stamp Duty of 5% on the portion of the property between £300,000 to £500,000.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.