Key points for landlords from the Autumn budget 2022
Capital gains tax relief allowance halved
From 2023, the Annual Exempt Amount for capital gains tax will be cut from £12,300 to £6,000, and then cut again to £3,000 from April 2024.
“This will be unwelcome news for landlords, second home owners and those looking to sell their property as capital gains tax is applied at a much higher rate for residential property sales,” says Jamie Morrison, Head of Tax at HW Fisher.
Stamp duty cut to remain – but only until 2025
The Chancellor shared that “the OBR expects housing activity to slow over the next two years, so the stamp duty cuts announced in the mini-budget will remain in place but only until March 31 2025.”
This means that the threshold of the price of a property before stamp duty is paid will stay at £250,000, up from the previous threshold of £125,000 – but now for a time limited period.
Dividend allowance will be cut from 2023
The dividend allowance will be cut from £2,000 to £1,000 in 2023, and then drop further to £500 in April 2024.
This will affect any landlords using limited company structures – a growing band of landlords – as they pay themselves and other shareholders dividends from their rental profits.
