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Resources

Property update: Spring 2024

Resources

Property update: Spring 2024

This page was last updated on May 21, 2024
Our property specialists give a round-up of the latest developments and tax changes affecting property owners, particularly those with holiday lets.

Property owners might wish to reconsider their plans after several significant property-related tax changes were unveiled in the March Budget.

Furnished Holiday Lettings

Among Chancellor Jeremy Hunt’s announcements was news that the current favourable tax treatment for furnished holiday lettings (FHLs) will be abolished with effect from 6 April 2025.

From that date FHLs will be treated the same as other let properties for tax purposes. This means:

With these changes in mind, some property owners may want to reconsider their strategy – for example, whether an FHL should be sold before April 2025 so that it still attracts the favourable rate of 10% CGT.

Abolition of Multiple Dwellings Relief (MDR)

Multiple dwellings relief (MDR), which reduces the stamp duty land tax when buying two or more dwellings in the same or a linked transaction, is also to be scrapped – this time from 1 June 2024.

Property transactions with contracts exchanged on or before 6 March 2024 will continue to benefit from the MDR relief regardless of when they are completed, as will any other purchases completed before 1 June 2024.

Cut to higher rate CGT

Finally, from 6 April 2024, the higher rate of CGT for residential property disposals has been cut from 28% to 24% from. All other rates have remained unchanged.

New controls on holiday lets

From this summer, new holiday lets in England will be subject to controls aimed at preventing local people being unable to afford to live in their own community.

The changes will mean people need to seek permission from their local council to turn a property into a short-term let, a mandatory national registration scheme will also be introduced.

People renting out their main home for fewer than 90 nights a year will not need planning permission. Hotels, hostels and B&Bs are unaffected by the changes.

Can we help?

If you are affected by these measures, contact the Shipleys property team. For more on the Budget, download our full summary.


Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.

Copyright © Shipleys LLP 2024

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