The budget 2024 - What you need to know as a landlord

In his recent budget speech, Chancellor Jeremy Hunt has unveiled significant changes to the tax landscape, particularly affecting landlords involved in holiday lets.

Holiday lets

The Furnished Holiday Lettings regime, which previously offered tax incentives to landlords engaged in holiday rentals, is now set to be abolished.

Expressing concerns about the distortion created by this tax regime in the housing market, Mr. Hunt emphasized that it was hindering the availability of properties for long-term rental by local residents. The scheme allowed tax relief for landlords who rented their properties to holidaymakers for a minimum of 105 days annually.

Multiple Dwellings Relief

Moreover, Mr. Hunt addressed the shortcomings of the Multiple Dwellings Relief, a provision offering stamp duty discounts for buyers acquiring multiple properties in a single transaction. He highlighted that despite its intended purpose of encouraging investment in the private rented sector, the relief was found to be regularly abused and ineffective.

Reduction in CGT

Despite these changes, there was positive news for landlords as the Chancellor announced a reduction in the higher rate of property capital gains tax from 28% to 24%. This decision, backed by the Office for Budget Responsibility and the Treasury, is expected to stimulate more property transactions and ultimately boost revenues.

During his announcement, Mr. Hunt made a specific reference to Labour deputy leader Angela Rayner, mentioning that the cut in property capital gains tax was "for you, Angela," alluding to her recent experiences with selling a council house.

VAT Registration Threshold

Among other noteworthy announcements in the budget, the VAT registration threshold for businesses is set to rise from £85,000 to £90,000 starting in April.

Household Support Fund

Additionally, the government has pledged to maintain the same level of financial support for the Household Support Fund (HSF) for an additional six months. This initiative, launched in 2021, assists families with low incomes by providing funds to local councils. These councils, in turn, use the money to support families through various means, including food banks, warm spaces, and food vouchers.