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2024 tax changes every landlord needs to know
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2024 Tax Changes Every Landlord Needs to Know

UK Chancellor Rachel Reeves presented the Autumn Budget on 30 October 2024. There was a keen interest for any tax changes that …

C
Chirag
October 24, 2025
UK Chancellor Rachel Reeves presented the Autumn Budget on 30 October 2024. There was a keen interest for any tax changes that will affect the finances of taxpayers, business owners, and property investors in general. Using Making Tax Digital software became crucial to staying compliant with HMRC rules. While many speculated on across-the-board increases in tax rates, the actual announcements were reliefs and some gradual changes. What are the key points that landlords need to know? Let us take a look!

Predictions vs. Reality in the Autumn Budget

Speculation had been rife for months in advance of the Autumn Budget, with predictions running rife of heavy tax rises to plug a £22 billion hole in the public finances. Indeed, one of the biggest concerns for many landlords and property investors alike was an increase in CGT and IHT, but also changes to SDLT and pension contributions. Whereas some of these alterations were expected, a lot of them were actually rather sudden changes in decisions that caught many by surprise and relieved landlords in many ways.

Key Tax Changes for Landlords

Capital Gains Tax (CGT)

The most widely expected change was to CGT, not least because residential property investors are frequently severely whacked by the tax. Ahead of the budget, there was speculation that CGT could soar as high as 45%, in line with Income Tax rates for higher earners.

Prediction – Increase in CGT rate to as much as 45% for residential property.
Reality – Whereas CGT for other assets did increase, the residential property CGT did not change. On all other assets apart from residential property, the rates of CGT increased from 10% to 18% for basic-rate taxpayers and increased from 20% to 24% for higher-rate taxpayers. The news was a relief for property investors who were thus saved from the pangs of higher taxation in the property market.

While there is relief on CGT for residential properties, further signs are suggesting that may drive some landlords out-as house price growth slowed from 3.2% in September to 2.4% in October, with potential reflections of a cooling of the market as investors weigh options.

Inheritance Tax (IHT)

IHT was another area where predictions suggested changes might be necessary. The expectations were that the government would either increase the rate of tax applicable or reduce the threshold at which the tax applies.

Prediction – The 40% IHT rate may increase, or the nil-rate bands are reduced.
Reality – The government resolved to retain the general nil-rate band at £325,000 until April 2030 and increased the residence nil-rate band in relation to properties passed on to direct descendants to a potential £1m if passed on to a surviving spouse or civil partner. This alleviated the pressure that IHT would dramatically go up.

While the freeze on IHT thresholds could see more estates fall within taxable limits as house prices rise, the relief here was significant to landlords who rely on property inheritance strategies.

Stamp Duty Land Tax (SDLT)

One of the other major areas of concern surrounded Stamp Duty Land Tax (SDLT) rates. Many had expected a hike in SDLT for higher-value properties or even an increase in rates for additional properties.

Prediction – SDLT rates go up for higher-value properties and additional ones.
Reality – The government did not hike the basic SDLT rates, but there was an additional surcharge of properties 2% plus effective from October 31, 2024. In simple terms, property purchase would now be costlier for Buy-to-Let investors and second homeowners in the rental market.


The increase in SDLT surcharges means that some Buy-to-Let investors will reconsider their portfolio in a market already being influenced by rising mortgage costs and cooling property price growth. Where landlords leave the market in significant numbers, there could be implications for rental availability which could further prolong the general shortage in housing.

Pension Contributions and Non-Dom Status

The Autumn Budget did not touch the limits on pension contributions. The government announced the abolition of the non-domicile status though affecting landlords with offshore assets.

The Impact from Tax Changes on Landlords

Overall, the 2024 Autumn Budget granted a little bit of relief to landlords, in that CGT rates on residential property did not increase and IHT thresholds were frozen. On the other hand, there is a good chance that Buy-to-Let investors may reconsider their strategy in the wake of a 2% hike in the SDLT surcharge on additional properties. With housing affordability still a problem, growing demand for rental properties could continue to allow landlords to improve rental income, despite the financial squeezes.

Conclusion

The Autumn Budget 2024 was a cautious balancing act by Chancellor Rachel Reeves in order to provide the required funds to fill public sector financial gaps. The main areas relating to landlords will be the CGT and IHT relief, while any additional SDLT surcharge burden on additional properties may provide some strain. It will therefore be important for landlords to revise their strategies to reflect the wider market trends, in particular where fiscal drag and taxation thresholds are likely to increase over time. Being informed and proactive in respect of such changes will be of paramount importance in trying to work through what is an ever-changing tax landscape.

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#Landlord#rent prices#Autumn Budget