Autumn Budget - Key Updates

What does the Autumn Budget mean for the property market?

Stamp Duty - The budget has confirmed that for first-time buyers, they will not have to pay tax on anything below £250,000. However, for second home buyers, as of today (31st October), the stamp duty land surcharge will increase from 3% to 5%.

Mortgage Rates - The base rate set by the Bank of England is set to remain the same, however, there is an expectation there will be a 0.25% point reduction to the base rate following the Monetary Policy Committee meeting on 7th November. Lower rates can boost the housing market and allow for more affordable borrowing.

Capital Gains Tax & Inheritance Tax - An increase in CGT (increase from 18% to 24%) has made it more advantageous to invest in property from a limited company rather than as an individual. This is because businesses aren’t subject to income or capital gains tax but instead comply with corporation tax, which currently sits at 20%. The inheritance tax is currently levied at 40% for estates over a £325,000 value threshold, however, through various tax-free allowances, only 6% of estates will be liable for tax this year.

If you having concerns regarding selling, or purchasing a property, our dedicated Estate Agency team will be happy to take your call to discuss.

T: 01900 822016

E: info@mitchellsestategancy.co.uk

Information taken from Rightmove