Spring Budget 2024: key takeaways

The Chancellor Jeremy Hunt’s Spring Budget was a political (and noisy) affair given the upcoming election.

He made some large tax announcements, and some changes to policy which will affect property owners and investors.

Here we round-up some of the main announcements:

  • Higher Rate of Capital Gains Tax on sale of residential property, which is not a primary residence, cut from 28% to 24% from 6 April 2024.

e.g. A property bought for £350,000 in late 2013 now selling for £520,000.

Total gains = £170,000 (in the higher rate tax bracket), taxable gains would be £167,000 with annual CGT allowance.

The change would mean the total CGT bill on the sale would be £40,080 (at 24%) rather than £46,760 (at 28%) a saving of more than £6,500

It will cost the Treasury £70 million in 2024/25, but it expects the move to bring in an additional £310 million the following year due to a rise in transactions.

This change could spur more sales activity, especially amongst landlords or those with more than one property who want to take advantage of these tax savings to sell their property. This increased stock could create opportunities for those looking to invest back into the market, especially in London and other urban centres.

  • Multiple dwellings relief for stamp duty scrapped

Rules around stamp duty have allowed buyers to use the average value of properties bought in a linked transaction to reduce the total amount of stamp duty payable.

e.g. A buyer purchases 5 flats for £1 million. If this were a simple purchase for £1 million, then SDLT of £71,250 would be payable.

Under this relief, £1 million can be divided by 5, with each flat assigned value of £200,000. This means stamp duty payable at lower rate, £6,000 each x 5 = £30,000

The relief will not be available to sales which complete after 1 June 2024.

This move will affect larger investors who will have benefitted from this relief on bulk purchases.

  • Furnished holiday lets regime scrapped

From 6 April 2025 short and long-term lets will be treated the same for tax purposes – so there will no longer be an advantage for those letting furnished properties for short-term rental.

This reflects the Government’s push to encourage more provision of long-term rental accommodation.

There was no mention by the Chancellor of stamp duty thresholds, meaning that if there are no more changes later in the year, the stamp duty holiday for first-time buyers who pay no stamp duty on the first £425,000  of a home purchase up to the value £625,000 will end in April next year.

It was also noticeable that the Chancellor did not announce any measures to help first-time buyers bridge the ‘deposit gap’ when buying a home, despite much talk of a 99% mortgage guarantee scheme. Perhaps this will be revisited in a manifesto.

In addition, the Chancellor announced:

  • 2p cut in Class 1 Employee National Insurance, reducing the main rate from 10% to 8% from 6 April 2024, and cut in Class 4 self-employed NICs from 8% to 6% from 6 April 2024.
  • Ending of the Non-Dom status for tax from 6 April 2025, replacing it with a residence-based system – with a new relief on overseas income and gains on first four years of residency.
    IHT for these individuals will also be moved to a residence-based system, not before April next year. This is the most lucrative move in the Budget – it is expected to raise £2.8 billion by 2026/27 and £3.6 billion in 2027/28
  • Business Rates: extending the Empty Property Relief “reset period” from six to 13 weeks from 1 April 2024. Our head of rating Gareth Buckley will be sharing a more detailed newsletter on all matters business rates. To receive a copy, email Lisa Glancy.

© Cluttons LLP. 2024. This publication is the sole property of Cluttons LLP. and must not be copied, reproduced, or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Cluttons LLP. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Cluttons LLP does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. We strongly recommend that you always seek advice and presentation from a suitable qualified professional on any matter.


If you do not wish to receive further communications from us, please email [email protected]. More details on how to opt out can be seen in our Privacy Policy.

James Hyman

Partner, head of residential agency

T +44 (0) 20 7407 3669
James Hyman, head of residential agency, Cluttons

If you do not wish to receive further communications from us, please email [email protected]. More details on how to opt out can be seen in our Privacy Policy.

Einar Roberts

Partner, residential consultancy

T +44 (0) 20 7647 7128
Einar Roberts

If you do not wish to receive further communications from us, please email [email protected]. More details on how to opt out can be seen in our Privacy Policy.

Gareth Buckley

National head of rating

T +44 (0) 161 521 5574

If you do not wish to receive further communications from us, please email [email protected]. More details on how to opt out can be seen in our Privacy Policy.

Gráinne Gilmore

Director of research and insights

T +44 (0) 20 7647 7142
Gráinne Gilmore, director of research & insights, Cluttons

Related services

Business rates

Working for occupiers, developers, and landlords in London and nationally, we operate across office, retail, and industrial and logistics sectors.

Residential asset management

Maximising the performance of your residential and mixed-use property portfolios is central to what we do. Whether seeking a full management service, including planning, valuation and asset…

Residential estate agency

When it comes to selling or letting your home, we are driven to make it stand out from the ordinary. It’s our purpose to help you make the most of its value and guide you with great consideration…

Residential investment

By understanding the details and drivers behind your requirements and strategy our specialist team can sell or buy the right type of UK residential investment property for your needs. Using our UK…