Autumn Budget 2024: key updates for landlords

Chancellor Rachel Reeves has delivered the first Labour Budget in 14 years. She announced a range of measures designed to plug a £22 billion ‘black hole’ in public finances.

It was confirmed that taxes will be increased by £40 billion, which has been described as one of the biggest tax-raising Budgets in history.

Although capital gains tax (CGT) rates for selling rental properties have been held, stamp duty rates for buying additional properties have been increased.

Read on for the latest announcements that could affect landlords and the rental market.

• stamp duty increase
• capital gains tax held
• income tax threshold freeze to end
• inheritance tax threshold frozen

Landlord stamp duty surcharge increased to 5%

The additional stamp duty paid by landlords on additional properties will be increased from three per cent to five per cent.

This means that a landlord buying a property worth between £250,001 and £925,000 will pay 10 per cent in stamp duty, up from eight per cent. 

Here’s an overview of the new rates, effective from 31 October 2024:

Property price	Normal stamp duty rate	Previous additional stamp duty rate	New additional stamp duty rate
Up to £250,000	0%	3%	5%
£250,001 to £925,000	5%	8%	10%
£925,001 to £1.5 million	10%	13%	15%
Above £1.5 million	12%	15%	18%

In 2022, the minimum rate at which people pay stamp duty was increased from £125,000 to £250,000.

The threshold is due to return to £125,000 in March 2025 and Labour hasn’t committed to an extension. 

This, combined with the increased stamp duty surcharge, will mean a significant increase in tax paid by landlords when buying new properties. 

Capital gains tax rates for landlords held

Despite strong rumours ahead of the Budget, Rachel Reeves confirmed that capital gains tax (CGT) paid by landlords would be held at the existing rates. 

CGT is paid by landlords on the profit they make when selling a property. The rates for selling property will remain at:

• 18 per cent for basic rate taxpayers
• 24 per cent for higher and additional rate taxpayers

More than a quarter (29 per cent) of landlords are planning to sell a property within the next 12 months, according to Simply Business research. At the same time, just 11 per cent are planning to buy a property during the same period.

Income tax threshold freeze to end

Income tax thresholds were frozen until 2028 by the previous government. Rachel Reeves has announced that they will begin to rise again in line with inflation from the 2028-29 tax year.

This means that the personal allowance will increase, as well as the thresholds for basic, higher, and additional rate income tax.

In theory, higher thresholds will lead to lower tax bills as wages increase.

Inheritance tax threshold frozen until 2030

The government has confirmed that the inheritance tax threshold will be frozen at £325,000 until 2030. 

That means the first £325,000 of any estate can be inherited tax-free, rising to £500,000 if the estate includes a residence passed to direct descendants. 

It rises further to £1 million when a tax-free allowance is passed to a surviving spouse or civil partner.

Due to a range of tax-free and gifting allowances, just six per cent of estates are liable for inheritance tax, according to the Chancellor.

What else was included in the Autumn Budget?

• the government will invest more than £5 billion to deliver its housing plan
• National Insurance contributions for employers will increase to 15 per cent from April 2025
• capital gains tax rates will increase (18 per cent on lower rate and 24 per cent on higher rate)
• fuel duty will be frozen in 2025, with the existing 5p cut extended for another year
• the national living wage for people aged 21 or older will rise by 6.7 per cent  to £12.21 an hour from April 2025

How do you feel about the Autumn Budget? Let us know in the comments below.

More guides for landlords

• What is buy-to-let property investment?
• UK house price predictions for next 5 years
• How to get a buy-to-let mortgage: a simple guide
• Renting with pets – a guide for landlords

Photograph: I-Wei Huang/stock.adobe.com