The Chancellor has delivered his 2024 Spring Budget stating that the government is sticking to its plan and taking long-term decisions to cut taxes.
The main headlines from the Budget worth noting surround that of property taxation.
The main blow to those in the agricultural industry with mixed income streams was that of the abolishment of the Furnished Holiday Lettings tax regime from 6 April 2025. These properties will now be taxed the same as short term and long term lets. As a result, many valuable tax reliefs will be lost on these properties, if you have plans surrounding such properties consider accelerating these before the abolishment date whilst reliefs remain.
In addition, the Chancellor announced the abolishment of multiple dwellings relief for SDLT from 1 June 2024, whilst impacting a relatively small group of taxpayers, this may have a large impact on these individuals, such as scenarios where farm purchases include multiple properties.
The Chancellor announced from 6 April 2024 the reduction of the higher rate of Capital Gains Tax on the sale of residential properties from 28% to 24% although welcomed, will unlikely cause an influx of property to the market especially with the reduction of the annual exemption in 2024/25 to £3,000.
The Government has confirmed the extension of Agricultural Property Relief from 6 April 2025 to land managed under environmental agreements and has provided that a working group with industry representatives will be created to clarify the tax treatment of environmental markets.
The Chancellor announced further tax savings for individuals notably the reduction of self employed NIC from 8% to 6% and the introduction of the UK ISA with an additional £5,000 allowance.
Although there was not an awful lot of content within the budget there were a few announcements which will impact the agricultural sector and consideration should be given to whether action is taken now.
If you have any questions relating to the impact of the Spring Budget announcements, please get in touch.
