Chancellor reveals property tax change in Budget...

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06 March 2024

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Chancellor reveals property tax change in Budget

The Chancellor has used his Budget to confirm a 2p cut in National Insurance, from April 6. This will take it from 10 per cent to eight per cent.

But for the property industry the real interest is likely to be in the reduce higher Capital Gains Tax rate on from 28 to 24 per cent.

Jeremy Hunt has also confirmed, he is scrapping tax advantages which make it more profitable for second home owners to let out furnished properties to holiday makers rather than to long-term tenants.

Related to the housing market, at least in prime London, the Chancellor has also abolished so-called non-dom status - pledging to introduce “a system which is both fairer and remains competitive."

On more general housing, he has allocated £242m of investments in Barking Riverside and Canary Wharf - on London. Here, he says, nearly 8,000 homes will be built "as well as transforming Canary Wharf into a new hub for life science companies".

He has also announced:

Inflation to hit two per cent over summer;
from April 1, increasing VAT registration threshold from £85,000 to £90,000;
a series of levelling-up measures includes £100m for areas including High Peak, Dundee, Conwy, Erewash, Redditch and Coventry to support "cultural projects";
Scotland to get extra £300m, Wales £170m and Northern Ireland £100m under the Barnett devolved funding formula;
£6bn more for the NHS, including £2.5bn this year;
£105m over next four years to building 50 new special free schools;
£75m for ‘hotspot policing’;
a freeze on fuel duty for another 12 months;
a six-month extension to the Household Support Fund;
a freeze in alcohol duty;
new tax on vapes and one-off rise in tobacco duty;
energy profits levy to be extended until 2029;
new British Savings Bond with a guaranteed rate, fixed for three years;
a new British ISA, allowing additional £5,000 investments in UK equity to be made each year;
extra £45m for medical charities, including £3m for Cancer Research UK;
£1m for a memorial to honour Muslims who died in two world wars.