Capital Gains Tax Increases

The Budget announced a raise in Capital Gains Tax (CGT), with the lower rate increasing from 10% to 18% and the higher rate from 20% to 24%. These changes affect profits from the sale of assets like second homes and other investments. For property investors and landlords, the changes may lead to careful consideration of timing and profitability for sales.

Changes to Inheritance Tax and Non-Dom Regime

The inheritance tax threshold freeze has been extended until 2030, allowing the first £325,000 of an estate to be inherited tax-free. Additionally, the non-dom tax regime is set to be abolished, potentially increasing tax obligations for UK residents with overseas domiciles. This reform aims to raise £12.7 billion over five years, according to the government.

Stamp Duty Increase

A 2% rise in stamp duty for second homes takes effect on 31st October 2024, raising the surcharge from 3% to 5%. This adds another financial consideration for buyers, which may impact purchasing decisions for second homes.

Inheritance tax rules for property held until 2030

The inheritance tax rules for property will remain the same until 2030. Currently the first £325,000 of a property’s value can be inherited tax-free. This rises to £500,000 if the property is passed on to direct descendants: children and grandchildren and £1 million if a property is passed onto a spouse and then inherited by direct descendants

Looking Ahead

The Autumn Budget 2024’s measures will shape the property sector and beyond. As changes take effect, it’s crucial for property owners and investors to stay informed on how these reforms may influence their plans. At Quintessentially Estates, we are here to provide tailored advice to help our clients respond effectively to these developments.

For more insights and personalised strategies, reach out to our team today. Together, we can navigate the shifting landscape and build a solid future in this evolving economic environment.