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The Spring Budget & the property market

12 April 2024 / Chris Gaunt , Caroline Styan
Issue: 8066 / Categories: Features , Profession , Tax , Property
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The Spring Budget brought several tweaks to property taxation & CGT, which are likely to impact the wider real estate market, write Chris Gaunt & Caroline Styan

With his Spring Budget last month, Chancellor Jeremy Hunt announced significant changes to the way the government will tax property, as well as to capital gains tax (CGT). These are likely to have wider ramifications throughout the real estate market. Below, we set out the main adjustments, as well as providing insight on their expected impact.

Capital gains tax

CGT in the higher tax band is to decrease from 28% to 24% from 6 April 2024. The lower rate will remain at 18%. This measure is applied to disposals of residential properties which are not an individual’s primary residence. Private residence relief (PRR) will continue to apply on disposals of main residences.

According to the government’s policy paper ‘Capital gains tax rate on disposals of residential property from 6 April 2024’, cutting the rate of CGT ‘is expected

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MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

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