The 2022 Autumn Budget and why it affects property

Today the budget we've all been sitting tight for just came out. The Chancellor Jeremy Hunt declared a raft of spending on Education and Nuclear Defense along with extra money for the NHS, amounting to billions per year.

The one change that effects the Property Market greatly is the Capital Gains Tax (CGT).

"The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024;"

That cuts the capital gains taxes by more than half one year and then half again the next.

What this means for you

Put simply, CGT is the taxes you pay on many items that go up in value and you; dispose of them, swap, give them away as a gift or sell them.

Things like;

Properties (that aren't your main residence) this will theoretically cut landlord profits by half when selling BTLs.

Shares

Possessions over 6k in value.

When you take into account interest rates, this effectively means anyone selling a BTL property in the next few years will have their profits cut both when remortgaging AND when trying to sell the property.

It's a interesting way to raise tax revenue for the government, but when landlords can't afford to remortgage and will also lost even when they sell, what other options are there?

It will be interesting to see how this policy works and the effects it has on the property market in future, as they won't come in until 2023.

Thanks for reading,

Anthony Wright