The latest UK budget has introduced several significant tax changes that will impact a lot of our clients here in Somerset as it impacts property owners, investors, and those planning their estates. Here’s what you need to know about these important updates.
Stamp Duty Land Tax Changes
If you’re considering purchasing a second property, be aware that the Stamp Duty Land Tax (SDLT) has increased by 2% with immediate effect. This change means buyers of additional properties will face a higher tax burden when completing their purchases.
Capital Gains Tax Adjustments
Significant changes to Capital Gains Tax (CGT) rates have been announced:
- Basic rate taxpayers will see an increase from 10% to 18%
- Higher rate taxpayers will face a rise from 20% to 24%
These increases mean that selling assets that aren’t your primary residence will result in a larger tax bill than before. Property investors and those with investment portfolios should review their positions and consider the timing of any planned sales. Also impacted will be probate matters when assets have risen in between death and sale of the asset producing a gain.
Inheritance Tax Updates
The government has confirmed that Inheritance Tax (IHT) thresholds will remain frozen until 2030. Additionally, important changes are coming to key reliefs:
- Agricultural Property Relief (APR) and Business Property Relief (BPR) will undergo reforms from April 2027
- These changes could significantly impact succession planning for farming families and business owners. We will provide further information in due course when more guidance has been published.
What Should You Do Next?
If you’re affected by any of these changes, we recommend:
- Reviewing your property portfolio and investment strategy
- Consulting with tax professionals about the timing of any planned transactions
- Updating your estate planning arrangements to account for the frozen IHT thresholds
For personalised advice on how these changes might affect your specific situation, please contact our team at Acorn Solicitors. We’re here to help you navigate these important changes and protect your interests.
