Lending giant urges support for landlords in the Budget
2 years ago | 8 comments
Spring Budget 2024 – Chancellor attacks holiday rentals and Multiple Dwellings Relief
1:47 PM, 6th March 2024, 2 years ago
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The Chancellor Jeremy Hunt has announced the end of a tax scheme that offered tax incentives for landlords with holiday lets in favour of long-term renters.
He said the Furnished Holiday Lettings regime was causing a ‘distortion’ in the housing market and depriving local people of affordable homes.
Mr Hunt said: “I am concerned this tax regime is creating a distortion meaning there are not enough properties available for long term rental by local people.
“So, to make the tax system work better for local communities I am going to abolish the Furnished Holiday Lettings regime.”
Allowed holiday let landlords to claim tax relief
The scheme allowed holiday let landlords to claim tax relief on their properties if they let them out to holidaymakers for at least 105 days a year.
Mr Hunt said he had also examined the Multiple Dwellings Relief, which gave stamp duty discounts to buyers of multiple properties in one transaction.
He said this relief was meant to encourage investment in the private rented sector, but an analysis found it had failed to do so and was ‘being regularly abused’.
The FHL proposal was flagged up by the Sunday Times with a potential of ending tax breaks worth £300 million and will see the regime being abolished from April 2025.
Landlords received some good news from the Chancellor
However, landlords received some good news from the Chancellor, who said he was lowering the higher rate of property capital gains tax from 28% to 24%.
He said this move was based on the advice of the Office for Budget Responsibility and the Treasury, who had found that it would boost revenues by stimulating more transactions.
Mr Hunt added that the cut in property capital gains tax was ‘for you, Angela’, referring to the Labour deputy leader Angela Rayner over her recent issues when selling a council house.
Other notable announcements in the Chancellor’s Budget include:
- VAT registration threshold for businesses to rise from £85,000 to £90,000 from April.
- The government will continue to provide the same amount of money for the Household Support Fund (HSF) for another six months. The HSF is a programme that started in 2021 to help families cope with the increasing expenses of living. The fund is distributed to local councils to aid families with low incomes in their regions. The money enables local councils to offer families assistance through food banks, warm spaces and food vouchers.
Tags:
Chancellor Jeremy Hunt, Furnished Holiday Lettings regime, Household Support Fund extension, long term rental impact, Multiple Dwellings Relief end, property capital gains tax cut, Spring Budget 2024, Spring Budget 2024 Landlord Impacts, stamp duty discount changes, tax incentives for landlords, VAT registration threshold increase
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Property industry reaction – Spring Budget 2024Related Articles
Chancellor targets holiday lets in £300m tax crackdown
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The landlord vote – who gets it?
2 years ago | 7 comments
Member Since July 2017 - Comments: 463
3:05 PM, 6th March 2024, About 2 years ago
Just a query to clarify – The FHL proposal was flagged up by the Sunday Times with a potential of ending tax breaks worth £300 million and will see the regime being abolished from April next year.
From April next year – is this April 2025?
From April next year – is this April next tax year, April 2024?
Member Since May 2015 - Comments: 2188 - Articles: 2
3:17 PM, 6th March 2024, About 2 years ago
At least the deck charis will be tidy.
Member Since March 2024 - Comments: 3
3:38 PM, 6th March 2024, About 2 years ago
Reply to the comment left by JohnCaversham at 06/03/2024 – 14:56
He did not mention holiday lets registered under business rates attracting small business rate relief.
Is it to be interpreted that from April 2025, that also goes, as ‘holiday lets’ cease to exist under hmrc
Member Since July 2018 - Comments: 23
3:41 PM, 6th March 2024, About 2 years ago
If FHL are to be treated as PRS The VAT on FHL should stop that’s a 20% saving, Let’s see
Sell now before you lose your 10% entrepreneur relief
Most FHL are in good districts at high prices, so likely buyers will be second homers or owner-occupiers
Nothing here to help the PRS sector that I can see
Look forward to reading in full , but if the playing field is level, then the Vat should go to
Member Since December 2023 - Comments: 1575
3:59 PM, 6th March 2024, About 2 years ago
I live in a seaside town.
I’m sure this budget will see a reduction in holiday lets in my town. However, they will be bought by retirees form cities long before any locals, often working seasonal jobs in the hospitality trade, can afford them.
So, fewer tourists, less work and more retired people. Maybe the locals will get better jobs in the care industry.
Member Since March 2023 - Comments: 1506
4:01 PM, 6th March 2024, About 2 years ago
For me , its basically the status quo except for CGT reducing which is good. So can’t complain really
Member Since May 2017 - Comments: 763
4:08 PM, 6th March 2024, About 2 years ago
At least tradesmen will be working a few more hours until they reach the new VAT threshold. I guess it increases supply without having to train anyone up
Member Since November 2015 - Comments: 584
4:10 PM, 6th March 2024, About 2 years ago
Reply to the comment left by Paul at 06/03/2024 – 14:11
But Paul, then they couldn’t tax you on inflation! Where’s the fun in that?
Member Since August 2016 - Comments: 1190
4:12 PM, 6th March 2024, About 2 years ago
I am just about to exchange contracts on one of my rental flats but thinking for the sake of a few weeks exchanging after 5th April. Anybody know if the reduction to 24% CGT applies in the coming tax year 2024/2025 or is it 2025/2026 ?
Member Since August 2016 - Comments: 1190
4:21 PM, 6th March 2024, About 2 years ago
Just answered my own question the Government’s website says it applies from April 2024.