Major UK Tax Changes – Spring Budget
What the changes mean for investors
At Fabrik Property Group, we closely monitor all the latest property market news. The new announcements made today are likely to have an immediate impact on the property market.
Let’s delve into what these changes entail and how they affect investors in the UK property market…1. Hunt abolishes multiple dwelling stamp duty relief (from June 2024)
Previously, there was a stamp duty relief for individuals purchasing more than one property at a time, which predominantly benefited investors. This relief as of June 2024 will be abolished, meaning investors can no longer save on stamp duty through bulk purchases. Each property will be subject to the full stamp duty.
However, properties that have already exchanged contracts prior to 6th of March 2024 will still be honoured under multiple dwellings relief. For example, a property that exchanged contracts in February 2024 but is not due to complete until after June 2024 will still receive the benefit of multiple dwelling relief.
2. Tax cuts for holiday homes (FHLs) (from April 2025)
This regime has enabled owners of “Furnished Holiday Lets” to…
• Claim Capital Gains Tax reliefs for traders (Business Asset Rollover Relief, Entrepreneurs’ Relief, relief for gifts of business assets, and relief for loans to traders).
• Be entitled to plant and machinery capital allowances for items such as furniture, equipment, and fixtures.
• Count the profits as earnings for pension purposes.
(gov.uk )
3. Non-dom tax regime abolished and replaced with a new scheme (from April 2025)
This tax regime, which allowed anyone living in the UK but not permanently settled to only pay tax on money earned within the UK.
Previously, it permitted wealthy individuals to reside in the UK but only pay tax on UK earnings, while paying tax on earnings within their other country of residence. (Often low tax countries)
Starting April 2025, new arrivals in the UK will not need to pay tax on foreign income for the first four years. However, after this period, they will be required to pay the same level of tax as UK residents.
4. Property capital gains tax reduced from 28% to 24% (from April 2024)
For those seeking to withdraw their investment from a property, this news comes as a relief, as they will now pay 4% less tax.
The rationale behind this move is to incentivise more property investors to sell, thereby increasing revenue through a higher volume of properties subject to the capital gains tax.
