The Autumn Budget 2024 has set clear measures affecting property investors, offering a stable future framework.
- Speculation around a rise in Capital Gains Tax (CGT) was unfounded, providing relief to investors.
- Additional 2% Stamp Duty Land Tax (SDLT) for investment properties increases existing burdens.
- The Alternative Bridging Corporation views this as a positive development toward stability and certainty.
- Growth in demand for specialist financial products is anticipated following these changes.
The Autumn Budget 2024 introduces significant measures providing property investors with a sense of stability. Despite market concerns about potential hikes in Capital Gains Tax (CGT) for residential properties, these fears did not materialise. Instead, investors face an additional 2% surcharge on Stamp Duty Land Tax (SDLT) for buying additional properties, raising the extra duty to 5%.
Jonathan Rubins from the Alternative Bridging Corporation expressed that maintaining current CGT rates on residential properties aligns with investor interests, as SDLT, although costly, is more predictable. The surcharge increase is considered preferable to an uncertain CGT rise, allowing investors to plan around these fixed expenses.
This Budget is seen as a milestone, ensuring greater clarity and removing speculation from the property investment landscape. The additional SDLT cost can be somewhat offset by strategic price negotiations, which is impossible with unpredictable CGT tied to capital gains.
Rubins highlighted the resilience shown by property markets during prior economic challenges, such as the global financial crisis and the Covid-19 pandemic. The Alternative Bridging Corporation is committed to delivering adaptable financial solutions during these evolving times, with an emphasis on products like bridging finance and development funding.
The corporation has reported a rise in demand for their specialist financial offerings. Their Alternative Term Loan is gaining traction, especially among buy-to-let investors, who are drawn to its flexibility and lack of early repayment charges, aiding portfolio management without prohibitive costs.
As the landscape of property investment continues to evolve, firms like the Alternative Bridging Corporation underscore their commitment to providing tailored financial solutions that cater to the nuanced needs of their clients. By doing so, they aim to support investor success across any market condition.
The Autumn Budget 2024, with its emphasis on SDLT adjustments and stable CGT rates, sets a clearer path for property investors.
