The government has announced plans to increase the higher rates for stamp duty on additional dwellings on the purchase of second homes, BTL residential properties and companies purchasing residential property, from 3% to 5% from tomorrow (31st October 2024).
Reeves also spoke of government plans to increase the lower rate of capital gains tax from 10% to 18% and the higher rate from 20% to 24% from today (30th October) — the new rates will match the unchanged residential property rates.
The government also doubled down on its 1.5 million homes pledge and pledged a further £500m to the affordable homes programme, while also announcing an additional £3bn in support for SMEs and the BTR sector through housing guarantee schemes.
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Meanwhile over £5bn was confirmed for housing investment in 2025-26, while an additional £46m of funding for the recruitment and training of 300 graduates and apprentices into local planning authorities was announced.
Also included in the budget were plans to increase employer national insurance from 13.8% to 15% while reducing the per-employee threshold which employers become liable to pay NI (the secondary threshold) to £5,000 from 6th April next year.
Meanwhile the government is also increasing employment allowance, meaning those employers with NIC bills of £100,000 or less will receive a discount of £10,500, up from £5,000.
The government has also announced permanently lowered business rate multipliers for retail, hospitality and leisure properties from 2026-27, while also freezing the small business multiplier and providing 40% relief on these properties, up to a £110,000 cash cap.
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