Spring Budget 2024: Affect on property
Spring Budget 2024: Affect on property
We’ve been eagerly anticipated conservative Spring budget 2024. With high inflation still higher than the desired 2%, higher cost of living (utilities, food, fuel etc.) we were expecting some reassuring news for the housing market & stamp duty.
Stamp Duty Land Tax
Instead of relief from stamp duty, the government promised to abolish stamp duty relief.
Multiple Dwellings Relief, which was introduced to those buying more than one house in a single transaction, has been taken away.
Intended to support investment in the private rented sector, Hunt said an external evaluation found “it was being regularly abused”.
Property Gains Tax
Successive interest rate rises and cost-of-living pressures weighing heavily on household budgets have impacted the UK housing market significantly over the past couple of years.
Of note, the chancellor announced that property gains tax is to be reduced from 28% to 24%, with a view to boosting revenues and increasing transactions.
He has also announced that the government is scrapping stamp duty relief for people buying more than one dwelling.
Additionally, the chancellor says he will scrap tax breaks which make it more profitable for second home owners to let out their properties to holiday makers rather than to long-term tenants to rent.
Hunt says he will abolish the furnished holiday lettings regime.
Non-dom tax status abolished
Hunt has promised to replace the current tax regime for non-domiciled people who live in the UK and pay tax on UK earnings, while maintaining a main home overseas.
The move is one that may cause consternation in London’s prime property sector, who rely on overseas investment to sell the capital’s most expensive homes.
“The Government will abolish the current tax system for non-doms, get rid of the outdated concept of domicile and the remittance basis in the tax system, and replace it with a modern, simpler and fairer residency-based system,” said Hunt.
As of April 2025, new arrivals won’t be asked to pay tax on foreign income for four years. If they continue to reside here, they will “pay the same tax as other UK residents.
Hunt called it “a more generous regime than at present and one of the most attractive offers in Europe” and estimated it would raise £2.7 billion for the UK economy.
Regeneration schemes
Hunt promises to transform Barking Riverside and Canary Wharf with £242 million of investment, alongside investments in Blackpool, Sheffield and Liverpool.
What are your thoughts on the 2024 Spring budget?