Autumn Budget 2024: Key Tax Changes and What They Mean for Property Investors

The Autumn Budget 2024 introduced several significant tax changes affecting the property sector, with implications for buyers, landlords, and businesses alike. At Breeze Capital, we understand how these changes can shape your property investment decisions, and we’re here to support you with flexible bridging loans tailored to navigate this evolving landscape. Let’s break down the key updates and their potential impact.

Stamp Duty Land Tax (SDLT)

What’s Changing?

• The surcharge for additional properties (Higher Rates for Additional Dwellings) has risen from 3% to 5% as of 31 October 2024.
• The single rate of SDLT for businesses purchasing dwellings over £500,000 increased from 15% to 17%.

Who Does This Affect?
These changes directly impact property investors, landlords, and businesses acquiring residential properties. Investors who accounted for 23% of property transactions in 2022/23 will feel the pinch, as their upfront costs increase.

Potential Impacts

• Buy-to-Let Challenges: Higher costs for investors may deter new purchases, exacerbating the housing shortage in the private rented sector.
• Support for First-Time Buyers?: While the surcharge aims to ease competition, no accompanying measures (such as Help-to-Buy) were announced to directly support first-time buyers.

Capital Gains Tax (CGT)

What’s Changing?
CGT remains unchanged in the Autumn Budget, but its existing impact on property sales is crucial to consider. Profits from selling non-primary residences—such as buy-to-let properties, business premises, or inherited homes—continue to be subject to this tax.

Who Does This Affect?
Landlords and investors looking to offload properties in a tightening market may face steep CGT bills, reducing their overall profits.

Potential Impacts
While CGT rules were not revised, ongoing financial pressures may drive more landlords to sell, especially with rising costs elsewhere in the sector. However, higher SDLT on purchases could dampen buyer interest, complicating the sales process.

Business Rates

What’s Changing?

• The small business rate multiplier will be frozen at 49.9p for 2025 and 2026.
• The 75% discount for retail, hospitality, and leisure properties will be replaced by a 40% discount from April 2025.
• The reduction in the business rates multiplier for smaller RHL properties will be funded by increasing the multiplier for properties over £500,000.

Who Does This Affect?
Estate and letting agents—particularly those in high-value locations—may face rising business rates, while smaller businesses in less costly properties may benefit.

Potential Impacts

• Financial Strain for Larger Firms: Premium location businesses could see increased operating costs.
• Relief for Smaller Agents: Reduced rates for smaller RHL properties could boost competitiveness.

Don’t let tax changes derail your investment plans. Whether you need short-term financing for a new purchase, support with development projects, or funds to bridge the gap during a sale, Breeze Capital has you covered.

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