Published: 31/10/2024
2024 Autumn Budget
After one hundred plus days of waiting, the chancellor of the Exchequer – Rachel Reeves delivered her Autumn Budget alongside the latest economic forecast from the Office for Budget Responsibility.
Regardless of your political persuasion it is good to see a female Chancellor for the very first time!
This much anticipated budget was the first chance for Labour to set out the direction of travel when it comes to managing the Country’s finances. The aim was to manage tax revenues and government spending, alongside announcing measures to stimulate economic growth.
So how has the Autumn Budget affected property owners?
As was heavily trailed beforehand, changes have been made to Capital Gains Tax, Inheritance Tax, and Stamp duty, all of which will have an impact on many of our clients.
In addition to this we wait to see how the Bank of England will react to the budget when it comes to setting interest rates, but early indications are that this range of measures and the increased level of borrowing will mean a slower decrease in rates over the next 2 years.
It is not just taxes that will have an effect…
The Labour Government have committed to improving homes to be energy-efficient, with the minimum requirement now being a C rating by 2030 – something that was recently scrapped by the Conservatives. This will come at a cost to Landlords who may have to spend to improve their portfolio.
Good news for developers?
As anticipated, there were incentives for property development, especially in urban areas. This will come through tax relief for affordable housing and relaxed regulations. In addition, the Government also want to relax planning restrictions for development on brownfield sites and ‘grey’ areas across the green belt. This again will benefit investors who like to invest in buy-to-let and large-scale investments.
After the Prime Ministers confusion with who classifies as a ‘working class person,’ it has left landlords, who haven’t been included in the group, ‘fair game’ for potential tax raises. This could affect a large group of people who will be subject to higher taxes.
Next Steps….
If you have tax related questions, then we would always advise you speak to your accountant in the first place. If you have a property related question, require a valuation, advice on Landlord compliance or are thinking of selling your commercial property VDBM have over 40 years’ experience in the Commercial Property market and pride ourselves on the valued relationships we have with our clients.
Please call us on 01923 845222 or e mail: property@vdbm.co.uk