Three key points in today’s budget relating to property:
1. Abolition of the multiple dwelling tax relief. This is likely to impact sellers and purchasers of country properties that have secondary accommodation, as the multiple dwellings relief was often used to reduce the stamp duty burden. We understand that it comes into effect today, so if you exchanged contracts before today the relief will still apply. With a final deadline of the 1st June 2024 to complete by.
2. Abolition of the furnished holiday let scheme. This will affect the profitability of running a second home as a holiday let.
3. Reduction of Capital Gains Tax on secondary homes from 28% to 24%. The treasury believes this will encourage people to sell their second homes more freely.
“As buying agents, it is Multi Dwelling Relief that has the biggest impact for our clients! This will almost certainly have an impact on the balance of affordability and tax liability. So more for the Revenue and less for those selling!” Says Richard Scrope who covers Wiltshire, Dorset and Somerset for JMChase, he continues “There is not enough information on holiday let changes and I will follow up when there is a better understanding of the impact on this.
