The Autumn Budget 2024 introduced notable changes to Capital Gains Tax (CGT), impacting a wide range of taxpayers, particularly property owners, landlords, and investors. Here’s an overview of the key changes and their implications.

Changes announced in the Autumn Budget 2024

From 30 October 2024, the CGT rates for disposals of chargeable assets, excluding residential property and carried interest, have increased:

• The basic rate rises from 10% to 18%.
• The higher rate increases from 20% to 24%.

Rates for trustees and personal representatives have similarly risen from 20% to 24%.

No Changes for Residential Property - The existing rates for residential property remain at 18% for basic rate taxpayers and 24% for higher rate taxpayers.

These adjustments mean that rates for residential and non-residential properties are now consistent, simplifying the CGT framework for disposals.

The annual exempt amount remains unchanged at £3,000 for the 2025/26 tax year.

What does this mean for property owners, landlords, and investors?

Residential Property

While CGT rates for residential properties remain unchanged, the broader landscape affects overall property investment strategies:

• Homeowners selling properties that are not their primary residence, such as buy-to-let properties or inherited homes, still face the same CGT obligations.
• Those considering selling residential properties might benefit from the alignment of CGT rates across asset types, simplifying tax planning.

Landlords and property investors

Landlords, particularly those with buy-to-let portfolios, face several considerations:

• Landlords who have previously used their property for business or rental purposes must carefully assess their CGT liability, especially as reliefs remain unchanged.
• Commercial property investors, for example, will see their CGT liabilities rise from 20% to 24% for higher-rate taxpayers.
• Investors holding non-residential properties or other chargeable assets might consider selling before rates increase or seek advice on offsetting gains against allowable losses.

Practical considerations

• For residential property sales, CGT remains due within 60 days of completion, while other gains must be paid by 31 January following the end of the tax year.
• Landlords and investors should review their portfolios to determine the impact of the increased rates on their future returns.
• Given the complexities, professional advice is essential for structuring disposals, planning for losses, or exploring reliefs.

The CGT changes introduced in the Autumn Budget reflect a step towards simplifying tax rates across different asset types, but they also present challenges for property investors and landlords. Understanding these changes and planning strategically will be crucial in navigating the new tax landscape.

If you would like some advice from our property expert, Haidee Watson, please get in touch by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.