LS Legal News Bulletin
Budget 2024: What Does it Mean for You?
Thursday 21st March 2024
👉 Changes Happening Now (April 6th, 2024):
◾ Capital Gains Tax (CGT) on houses is reduced:
When you sell a house, you usually pay a tax on the profit. This tax is called Capital Gains Tax (CGT). The rate for residential properties has been reduced from 28% to 24%.
◾ Employee National Insurance contributions (NICs) are lower:
This is a tax taken from your salary. The rate for employees has been reduced from 10% to 8%.
◾ Multiple Dwelling Relief for property tax is abolished:
This was a benefit for people who bought multiple properties at once. It is no longer available, but a lower tax rate still applies for buying six or more dwellings together.
◾ New real estate investment option:
A new type of investment fund, a "Reserved Investor Fund" (RIF), has been approved. These funds aim to be a low-cost way to invest in real estate.
📌 Changes Proposed for the Future (April 6th, 2025):
◾ New rules for people living in the UK but not permanently (Non-doms):
Currently, these individuals have some tax advantages. The new plan removes most of these benefits and makes them pay UK tax on their worldwide income after four years.
◾ Tax benefits for furnished holiday lettings (FHLs) are removed:
These are properties rented out for short periods. Currently, they enjoy certain tax benefits. These benefits will be removed in 2025.
❗ Additional Points:
◾ Inheritance Tax (IHT): Getting credit for inheritance tax payments is now easier before you receive your inheritance.
◾ Company tax and investment allowances: No major changes for companies or people who invest in businesses.
◾ Tax avoidance: A recent court decision that allowed some people to avoid tax is being reversed.
