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News – 10.04.24

Form PF: Are you up to speed with the latest developments?

Through this insight we will bring to your attention the main changes in a bitesize manner so that you can stay abreast of the requirements as they may apply to your firm. … Read more

Insight

Tax relief on heritage assets: Am I eligible?

For assets considered to be of national heritage, relief from Capital Gains Tax and Inheritance Tax is available. … Read more

Upcoming event – 29.04.24

Governance code updates and advice for Further Education colleges from Buzzacott and the ESFA

Join Buzzacott and the ESFA for a governance update for further education colleges … Read more

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enquiries@buzzacott.co.uk T +44 (0)20 7556 1200

Spring Budget 2024 statement - five impacts for Real Estate and Construction

The 2024 Spring budget statement presented a few tax changes for the real estate and construction sector. With this in mind, there are various implications for businesses in this space to consider. Here are the main take-aways from the statement:

Change to Capital Gains Tax (CGT) rates: The higher rate of CGT charged on the disposal of residential properties has been reduced by 4 percentage points from 28% to 24%.

Furnished Holiday Lets: From 6 April 2025, the complex but advantageous tax regime for short term holiday lets has been abolished.

Stamp Duty Land Tax (SDLT):

From 1 June 2024 the government is abolishing Multiple Dwellings Relief. Any transactions that have exchanged before 6 March 2024 will continue to benefit regardless of completion date. Any completed transaction will also continue to benefit provided completion takes place prior to 1 June 2024.
From 6 March 2024, providers of social housing will not be liable to pay SDLT on purchases with a public subsidy and public bodies will be exempt from the 15% anti-avoidance rate of SDLT.

About the authors

Jessica Beere

+44 (0)20 7556 1282
beerej@buzzacott.co.uk
LinkedIn

Liam McKeevor

+44 (0)20 7556 1244
mckeevorl@buzzacott.co.uk
LinkedIn

Change to Capital Gains Tax (CGT) rates: The higher rate of CGT charged on the disposal of residential properties has been reduced by 4 percentage points from 28% to 24%.

Furnished Holiday Lets: From 6 April 2025, the complex but advantageous tax regime for short term holiday lets has been abolished.

Stamp Duty Land Tax (SDLT):

From 1 June 2024 the government is abolishing Multiple Dwellings Relief. Any transactions that have exchanged before 6 March 2024 will continue to benefit regardless of completion date. Any completed transaction will also continue to benefit provided completion takes place prior to 1 June 2024.
From 6 March 2024, providers of social housing will not be liable to pay SDLT on purchases with a public subsidy and public bodies will be exempt from the 15% anti-avoidance rate of SDLT.

VAT registration and deregistration: From 1 April 2024, the VAT registration threshold will increase from £85,000 to £90,000.

National Insurance contributions (NIC’s): The main rate of NICs have been reduced by a further 2 percentage points for both employed and self-employed individuals.

Reserved Investment Fund (RIF): In 2023 the government initiated a consultation period for a new UK investment fund vehicle for professional and institutional investors (this includes UK based property funds). Legislation will be introduced in the spring finance bill and will impact how individuals invest and also how the fund is taxed and there ultimately how much of the income / gains are therefore available to the investor.

Planning: There were several other plans announced to encourage building and development. These include

The government is committing £2 million to boost global investment and trade opportunities for Northern Ireland.
A consultation will be initiated on extending full expensing to qualifying leased assets.
The budget confirms the intention to maintain the main corporation tax rate at 25% and the small profits rate at 19%, until at least 1 April 2025, giving some certainty to both investment companies and developers
The government has committed to building around 30,000 more new homes in the UK focusing investment specifically in Cambridge, London and Leeds.

Get in touch

If you have any questions about the impact of the Spring Budget, please fill out the form below and one of our team will be in touch.