The Spring Budget marks a significant event for the UK economy, providing insights into government spending and economic forecasts. On 6 March 2024, the Chancellor delivered what could be the final budget announcement before the upcoming General Election.
Here are the key takeaways from the Spring Budget that letting agents and landlords should be aware of:
- Tax cuts affecting holiday homes and multiple dwellings will impact landlords. The abolition of the furnished holiday lettings tax regime could result in holiday landlords losing an average of £2,835. This move aims to address the shortage of properties available for local residents.
- Capital Gains Tax reductions will affect landlords and the buy-to-let market. The higher rate of property Capital Gains Tax will decrease from 28% to 24%, potentially leading to increased transactions and tax revenue.
- Commitment to build one million homes by the end of the Parliament. The Conservative party has allocated £242 million to new house-building projects, including initiatives in London, Blackpool, Sheffield, Liverpool, and Cambridge.
- Small agencies may benefit from an increase in the VAT registration threshold, rising from £85,000 to £90,000. This change is expected to benefit smaller businesses, such as independent agencies.
Other announcements affecting property professionals include cuts to National Insurance, a fuel duty freeze, and a focus on clean energy without significant changes to energy bills.
At Click Estate Agents, we keep abreast of legislative changes and market trends to provide the best service to our clients. Contact us for expert advice on navigating the evolving property landscape.