Key Takeaways from the Autumn Budget 2024
Stamp duty increased to 5% on second homes
Those buying an additional home will need to pay an extra 2% of the property cost in stamp duty. Second-home stamp duty rates were previously 3%.
So, the new stamp duty bands are:
£0 – £250,000 – 5% stamp duty
£250,000 – £925,000 – 10% stamp duty
£925,00 – £1.5m – 15% stamp duty
Above £1.5m – 17%
Stamp duty threshold held for first-time buyers and home movers until April 2025
This means they won’t have to pay any stamp duty on properties costing up to £425,000. However, from next April, the stamp duty threshold will be lowered to £300,000.
Capital Gains Tax increased but rates on property stay the same
Capital Gains Tax is the tax charged on profits made from the sale of assets, including second homes.
Last week the chancellor increased Capital Gains Tax for lower rate taxpayers (those earning under £50,270 a year) from 10% to 18% and the rate for higher rate taxpayers (those earning over £50,270) from 20% to 24%.
However, the rates on residential property sales will remain at 18% and
Inheritance tax rules for property held until 2030
The inheritance tax rules for property will remain the same until 2030. Currently the first £325,000 of a property’s value can be inherited tax-free. This rises to £500,000 if the property is passed on to direct descendants: children and grandchildren.
And £1 million if a property is passed onto a spouse and then inherited by direct descendants.
£500 million for affordable housing
The budget announced £500 million for affordable housing as part of a package worth £5 billion to deliver 33,000 new homes, boost supply and support small housebuilders.
The government also plans to increase the supply of affordable housing by reducing Right to Buy discounts so that more council homes remain within the sector.