Will the spring budget affect your rental property?

The top key takeaways from the Spring Budget for landlords include a change to the tax cuts for holiday homes and multiple dwellings meaning that holiday let landlords could lose an average of £2,835. The aim of this clampdown would be, according to the Chancellor, to avoid the “distortion of not enough properties to rent for local people.”

It was also announced that the higher rate of property Capital Gains Tax will be reduced from 28% to 24%. Capital Gains Tax applies to properties when a person makes a profit on selling a property that is not their main home. Examples include when selling buy-to-let properties, business premises, land, and inherited properties.

The Spring Budget also abolished multiple dwellings relief (MDR). This was available for people who buy more than one residential property at a time. Originally introduced to minimise any barriers when investing in property, it’s likely this relief will affect larger landlords and the buy-to-let sector the most. Stamp Duty Land Tax Multiple Dwellings Relief will be abolished from 1 June 2024

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