01724 840 400 enquiries@ocglegal.co.uk

Suzannah Povey-White, our Group Marketing Manager takes a broad look at Capital Gains Tax and the Spring Budget


How is the cut in Capital Gains Tax going to affect the property industry?


The Chancellor has reduced CGT from 28% to 24% in the spring budget, but how does this affect landlords and the housing market in general?

Since 2023, investors of all types have been subject to higher taxes on their portfolios through cuts in the allowances for dividends and CGT exemptions. This meant many who’d not had to worry about reporting this income had to start paying additional taxes on their gains.

What does today’s budget mean for landlords? The Chancellor was clearly aiming for fiscal stimulation by reducing the rate of CGT, therefore raising tax revenues by more properties being sold.

The question remains, will this stimulus be damped for landlords by the CGT allowance being slashed for 24/25 to £3000 from the previous rate of £6000?

In the document accompanying the budget, it was stated ‘This will encourage landlords and second home-owners to sell their properties, making more available for a variety of buyers including those looking to get on the housing ladder for the first time, while also raising revenue over the forecast period.’

Whilst it appears the chancellor is favouring landlords in this reduction in CGT, in reality it looks like a short-term measure to stimulate the housing market by increasing the number of available properties through pushing those landlords teetering on the edge of selling their properties into making a snap decision.

Suzannah Povey-White