“The CGT increase on asset sales/business sales could affect future retirement plans, meaning clients are working longer to some degree or saving more heavily. Salary sacrifice is now more attractive given that NI rates have increased.”
Stamp Duty Land Tax: The increase in Stamp Duty Land Tax for additional properties will affect businesses purchasing property.
This is bad news for budding property barons:the Higher Rate for Additional Dwellings surcharge of Stamp Duty Land Tax will rise from 3% to 5% as of 31 October 2024, providing those looking to move home, or purchase their first property, with a comparative advantage over second home buyers, landlords, and businesses purchasing residential property.
At the moment, buyers of homes worth less than £250,000 don’t pay stamp duty. This was doubled from £125,000 under Liz Truss’s mini-Budget in September 2022.
The threshold is £425,000 for those buying their first property. This was raised from £300,000 as part of the mini-Budget. These higher thresholds will end in March 2025, when they will revert to their previous levels.
Current thresholds:
- £0-£250,000 (£425,000 for first-time buyers) = 0%
- £250,001-£925,000 = 5%
- £925,001-£1.5m = 10%
- £1.5m+ = 12%The single rate of stamp duty charged when firms buy dwellings worth more than £500,000 will also increase from 15% to 17%.
The single rate of stamp duty charged when firms buy dwellings worth more than £500,000 will also increase from 15% to 17%.
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