Currently, landlords whose properties are owned in their names are exempt from capital gains tax on gains up to £12,300. This amount will reduce to £6,000 in April 2023 and to £3,000 in April 2024. For individual landlords, this means they will pay an additional £1,764 in tax for higher rate taxpayers and £1,134 for lower rate taxpayers on capital gains above £6,000 in 2023-24. As of April 2024, higher-rate taxpayers will pay an extra £2,604 in tax and lower-rate taxpayers will pay an extra £1,674 on any capital gains above £3,000.

For landlords who own properties through limited companies, the Dividend Allowance will decrease from £2,000 to £1,000 and to £500 from April 2023. Taking £2,000 in dividends in 2023-24 for example would incur an additional tax of £87.50 for lower rate taxpayers, £337.50 for higher rate taxpayers, and £393.35 for additional rate taxpayers.

Aside from this, the government will reduce the Capital Gains Tax Annual Exemption Amount from £12,300 to £6,000 from April 2023, and to £3,000 from April 2024.

Because of the increased demand that’s put upon taxpayers as a result of the Autumn Statement of Interest, UK Landlord Tax is advising that landlords get in contact with any questions they may have regarding the budget, particularly those pertaining to changes to capital gains tax.

If they end up requiring more detailed tax advice, then they can expect to pay a modest fee for the service when they require it. However, it should be noted that if they wish to partner with UK Landlord Tax on a long-term basis, they can be reimbursed this fee.

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*Property Wire