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What the UK’s Spring Budget means for the property market



March 6th saw Chancellor Jeremy Hunt deliver the government’s Spring Budget, likely the last financial statement before the next general election, and the update included significant news for UK property owners and landlords. Amidst hopes of a much-needed boost for the sector after successive interest rate rises and cost-of-living pressures, certain upcoming changes to the market could make now the perfect time to invest in UK property.


Below we break down key updates from the budget.


Capital Gains Tax


The chancellor announced that Capital Gains Tax (CGT), a tax charged on gains made when an asset like property is sold or transferred, is to be reduced from 28% to 24% on 6 April 2024 in a bid to try and increase property transactions. It was also previously announced that the CGT free Annual Exempt Allowance (AEA), the amount of gains you can make in a tax year before they start to be taxed, will also be reduced. The AEA threshold, which is currently at £6,000 for 2023/24 tax year, will be halved to £3,000 from the 2024/25 tax year.


Multiple Dwellings Relief and Stamp Duty Land Tax


Multiple dwellings relief (MDR) is an opportunity in the Stamp Duty Land Tax (SDLT) regime which can reduce the amount of tax paid when buying two or more residential properties in the same or a linked transaction.


According to the Chancellor the current relief system is “regularly abused” rather than encouraging investment in the property sector, and in recent years many claims by taxpayers that granny flats, annexes and outbuildings constitute separate single dwellings have come to court.


MDR will no longer be applicable for transactions that complete or are substantially performed after 31 May 2024, but will continue to apply to transactions if contracts were exchanged before 7 March 2024. Landlords looking to grow their portfolios could be affected by the scrapping of multiple dwellings relief from 1 June 2024 which means the next few months might be the ideal time to move ahead with multiple property investment plans.


The government commits to building more homes


The Chancellor has also re-iterated the Conservative party’s commitment to build one million homes by the end of the Parliament - allocating £242 million to new house building. According to Hunt financial allocations amounting to £188 million are designated for development projects in Sheffield, Blackpool, and Liverpool among others.


Addressing ongoing availability issues in the housing market, the Chancellor also declared the abolition of the furnished holiday lettings regime. This is with the intention to discourage the preference of letting properties to holidaymakers over long-term tenants.


The non-dom tax status has been abolished


Hunt also announced that there will be changes to 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.


As of April 2025, new foreign landlords in the UK won't be asked to pay tax on foreign income for four years but after that will be regarded the same as other UK taxpayers. The Chancellor has estimated that the new plans will raise £2.7 billion for the UK economy, but many industry experts predict that it will make investment from overseas more difficult in future, and seeking expert guidance will be vital to ensure investors and landlords get the most out of their goals for the market.



Several of the Chancellor’s updates from the Spring Budget indicate that now might be the ideal time to act on any plans for the UK property market, whether as a landlord or for your own personal requirements. For those looking to invest in the UK property market Tailor My Property has an expert network of property, mortgage, tax and finance professionals who are able to advise and assist with a wide range of specialist queries, requirements and goals.



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