As your trusted local lettings and sales experts at R&G Property Bristol, we're here to break down the key points from the Spring Budget 2024, announced by Chancellor Jeremy Hunt on March 6, 2024. With our finger always on the pulse of the property market, we understand how these changes can impact our landlords, investors, and the broader property landscape in Bristol and beyond. Here's what you need to know:
Changes in Tax for Holiday Homes and Multiple Dwellings: A significant update comes with the abolition of the furnished holiday lettings tax regime. This decision aims to address the imbalance created by a lack of rental properties available for local residents, potentially affecting holiday landlords who might see a decrease in tax benefits. For our clients invested in holiday rentals, this could mean a recalibration of strategy to align with the new tax landscape.
Reduction in Capital Gains Tax: A welcome surprise for many in the property sector is the reduction of the higher rate of Capital Gains Tax from 28% to 24%. This adjustment is expected to invigorate the market by encouraging more property transactions. For our landlords and investors, particularly those considering selling buy-to-let properties or other investment properties, this could present new opportunities for portfolio growth and restructuring.
Government's Housing Commitment: Reinforcing its promise, the government has pledged to build one million homes by the end of this Parliament, dedicating £242 million to this endeavour. With projects planned across the UK, including areas that might influence the Bristol market, this move could significantly impact local housing supply and opportunities for development.
VAT Threshold Increase for Small Agencies: The increase of the VAT registration threshold from £85,000 to £90,000 is a positive shift for smaller agencies and businesses. At R&G Property Bristol, we see this as a step that supports the growth and sustainability of small, independent agencies like ours, allowing us to continue providing exceptional service to our clients without the added pressure of increased VAT responsibilities.
Other Notable Announcements:
National Insurance contributions have been reduced further, from 10% to 8%, which could alleviate some of the financial burdens for employers and employees alike within the property sector.
The continuation of the fuel duty freeze at 53p per litre is beneficial for us and our clients, as it helps keep the costs of property viewings and visits more manageable.
The focus on clean energy and the long-term goal for nuclear energy did not bring immediate changes for energy bills, but it's an area we'll keep monitoring, especially how it might affect our clients and their properties.
At R&G Property Bristol, we're committed to navigating these changes alongside our clients, offering our expertise to ensure your property investments continue to thrive under the new budgetary landscape. Should you have any questions about how these updates might affect you or your property portfolio, please don't hesitate to reach out to our team for personalized advice and support.