Autumn Budget 2024: What Landlords Need to Know

Rachel Reeves’ first budget as chancellor—and the first budget under the new Labour government—brought in several new measures that directly affected landlords.

There had been concerns among the landlord community that the autumn statement would significantly affect the market, but ultimately much of what was speculated on didn’t materialise.

Let’s take a look at what was announced last month (October 2024) and what it means for you.

Stamp Duty Land Tax increase

By far the biggest change for landlords was the increase in Stamp Duty Land Tax (SDLT) from 3% to 5%, effective from 31st October 2024. This increased rate of SDLT is applicable to landlords, property investors and companies that purchase residential properties as second homes or buy-to-let properties.

Let’s take a look at an example.

Before the increase, a landlord buying a property for £200,000 would be liable to pay £6,000 in SDLT. However, that same property purchase would now come with a £10,000 SDLT bill—and this is set to increase further in spring next year. This is because Rachel Reeves did not extend the end date of 31st March for the temporary increase in the residential nil-rate threshold from £125,000 to £250,000, previously put in place by former chancellor Jeremy Hunt. This means that, from 1st April 2025, a £200,000 property purchased as a second home or buy-to-let would incur an £11,500 SDLT charge.

There’s one caveat to be aware of: if contracts were exchanged prior to 31st October, the previous rate or 3% still applies. 

For non-UK residents purchasing residential properties the 2% surcharge still applies.

Inheritance Tax threshold frozen

The IHT nil-rate band is remaining at £325,000 until April 2030, despite some commentators expecting an increase—although any taxband threshold freeze is an effective staggered rise in real-terms.

However, agricultural and business property relief is changing from April 2026. There will be 100% relief on the first £1 million of combined business and agricultural assets, with 50% relief applied to the remaining value beyond £1 million. Considering this change, we’d recommend proactive estate planning to ensure you maximise tax efficiency.

Capital Gains Tax for property sales stay the same

The rate of Capital Gains Tax (CGT) increased from 10% to 18% for basic rate taxpayers, and from 20% to 24% for higher rate taxpayers, bringing this inline with rates for property sales which are remaining unchanged.

The Business Asset Disposal Relief (BADR) rate is also increasing from 10% to 14% from 6th April 2025, which could offer benefits for landlords. However, because most landlord limited companies are classed as investments, it’s less likely they’ll be able to claim BADR.

What should you do now?

If you’re a landlord, whether you own a single additional property or a large investment portfolio, it’s important to stay on top of the latest legislative and tax developments—both now and into the future.

Here at Warr & Co we offer specialist accounting services designed specifically for landlords, providing comprehensive advice to ensure you stay compliant and tax efficient.

To find out more, book a free landlord accounting consultation today.