Spring Budget 2024: Key Changes and Implications for Property Investors
The Spring Budget 2024 was announced by Chancellor Jeremy Hunt this week. One question many were left wondering in the aftermath was; was this an election budget?
According to Pippa Crerar from The Guardian, there was a sneaky appendix in the paperwork of the budget announcement by The Chancellor that said it would be the final fiscal statement of this parliament, almost certainly guaranteeing that it is.
Whether that means the government are preparing for a snap election in May (The Prime Minister was coy when speaking on the radio the following day) or in the Autumn, we’ve yet to see, but things are heating up ahead of an election this year, that’s for sure.
Was it a successful budget for Jeremy Hunt and Rishi Sunak? We’ll allow you to be the judge, but what we’re here to report on is the measures that are likely to affect UK property and investors,
What Did We Learn From the Spring Budget 2024?
The 2p reduction in National Insurance grabbed the headlines, as well as the freeze in fuel duty. There were some other measures worth considering before we get into the details for property investors.
The government will raise the threshold for the High Income Child Benefit Charge from £50,000 to £60,000 from 6 April 2024, and there will be a tapered charge between £60,000 and £80,000.
The Chancellor also announced that he would be abolishing the infamous ‘non-dom’ status, meaning that people who don’t live in the UK but earn money here will no longer be able to escape the normal capital gains and income tax rules.
The government also announced an increase in tax-free savings allowance via a ‘British ISA’. The UK ISA will be a £5,000 allowance in addition to the existing ISA allowance. It offers a new tax-free product for people to invest in UK-focused assets. The British Savings Bonds will be delivered through National Savings and Investments.
Tax Breaks for Property Investors
Perhaps most interestingly, in the spring budget 2024, the government announced the removal of some taxes for property investors, signalling a recognition of the importance of the industry.
There will be a reduction in the higher rate of Capital Gains Tax on residential properties from 28% to 24% from 6 April 2024. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band.
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