Our South West London office network

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361 Upper Richmond Road West
East Sheen SW14 8QN

T 020 8876 4567

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43 Richmond Road
Kingston upon Thames KT2 5BW

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Richmond office
Holbrooke House 34-38 Hill Rise Richmond TW10 6UA

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35 High Street
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46-48 Heath Road
Twickenham TW1 4BY

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Budget response by investors suggests optimism

Posted 2 months ago.
Budget response by investors suggests optimism
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Budget response by investors suggests optimism

There was some good news for property owners and investors in the recent budget. There was no change to Capital Gains Tax (CGT) on the sale of residential property which remains unchanged at a 18% and 28%, giving certainty to landlord investors who were widely expecting to be paying more tax. There was also no CGT increase for overseas investors although from April 2025, people who have been UK residents for no more than 10 years out of the previous 20 will be subject to IHT on UK assets only. Inheritance tax “nil-band rate” remains unchanged for UK residents.

New stamp duty relief thresholds were also announced from 1 April 2025 to contribute to the government’s plan to raise £40bn for public spending. The announced changes will make buying a first property or moving up the property ladder more expensive for first-time buyers and home movers, however, there are savings if you complete your purchase before this deadline. Potential second-home buyers and investor landlords will also see stamp duty rises on second homes at every threshold. If the outcome is fewer homes to rent this could lead to an uplift in rents and yields for landlords even though rents are at a historically high level.

The discount for first-time buyers from April 1st 2025, will be no SDLT up to £300,000, 5% SDLT on the portion from £300,001 to £500,000. If the price is over £500,000, you cannot claim the relief, so you will need to follow the rules for people who’ve bought a home before. The discount for property-owning buyers from April 1st 2025, will be no SDLT up to £125,000, 2% SDLT on the portion from £125,001 to £250,000, 5% SDLT on the portion from £250,001 to £925,000, 10% SDLT on the portion from £925,000 to £1.5 million, 12% on the portion above £1.5 million.

Stamp duty rates for second homeowners from April 1 2025, will be 5% up to £125,000, 7% SDLT on the portion from £125,001 to £250,000, 10% SDLT on the portion from £250,001 to £925,000, 15% SDLT on the portion from £925,001 to £1.5 million, 17% SDLT on the portion above £1.5 million.