Trick or Treat — A quick summary of what the budget means for the property market

The Autumn Budget 2024 saw history being made as Rachel Reeves became the first female to hold the office of Chancellor and deliver a Budget! Here is a quick summary of what the budget means for the property market.

Capital Gains Tax

Capital gains tax for residential homes is to be held at current rates: 18 per cent and 24 per cent. Capital gains tax (CGT) is payable on profit made by the value increase of an asset — such as a house — after its sale. The tax payable is not based on the amount of money you receive for the asset but the gain you make.

Stamp Duty

There was no mention of freezing stamp duty thresholds in the Budget which means thresholds will increase for homebuyers from the end of March 2025 as planned. 

First-Time Buyers

There will no longer be first-time buyer relief on properties priced up to £625,000 – the total property price must be no more than £500,000 for any first-time buyer savings on stamp duty to apply.

Additional Properties

From today, anyone buying an additional property to their main residence must pay a five per cent surcharge. Except for the increased surcharge on buy-to-lets and second homes, current stamp duty thresholds are in place until 31 March 2025.