Spring Budget 2024 Summary and Tax Year Changes

Our experienced and friendly Property and Life Planning teams have reviewed the recent Spring Budget and provide the below summary:

Property

Stamp Duty Land Tax: First Time Buyers’ Relief for nominee purchasers

From 6 March 2024, the rules for claiming First-Time Buyers’ Relief from Stamp Duty Land Tax in England and Northern Ireland have been amended so that individuals buying a leasehold residential property through a nominee or bare trustee will be able to claim First-Time Buyers’ Relief, including victims of domestic abuse.

A nominee or bare trustee is a person who is appointed to hold property on behalf of the beneficial owner.  If you would like more information about these roles, get in touch with us and we can guide you through these.

Stamp Duty Land Tax: Abolition of Multiple Dwellings Relief

From 1 June 2024, Multiple Dwellings Relief, a bulk purchase relief in the Stamp Duty Land Tax regime in England and Northern Ireland, will be abolished. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other bulk purchases that are completed before 1 June 2024.

Capital Gains Tax: Higher rate cut for residential property

From 6 April 2024, the higher rate of Capital Gains Tax for residential property disposals will be cut from 28% to 24%. The lower rate will remain at 18% for any gains that fall within an individual’s basic rate band. Private Residence Relief will continue to apply.

Life Planning Department

 Administrative change to ease the payment of Inheritance Tax before probate or confirmation

The government will relax the Inheritance Tax requirements for ‘grants on credit’.  From 1 April 2024, personal representatives of estates will no longer need to have sought commercial loans to pay Inheritance Tax before applying to obtain a ‘grant on credit’ from HMRC.

Simplify tax administration for trust and estates

From 6 April 2024, trusts and estates with income of all types (not just income from savings as is currently the case) of up to £500 will not pay tax on, or report on, income as it arises.  Where income exceeds that amount, tax will be payable on the full amount.

The £500 tax free amount will apply for every tax year of administration and to chargeable income, after taking off ISA income which continues to be exempt after date of death until closure or up to three years following death.

 

We hope that you find the above helpful.  Get in touch with our team if you need specialist property and life planning advice.

Guest Walker
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