With all the talk about the upcoming Labour Budget, we’ve been thinking about how it could impact our property investments.
Key Budget Predictions
Capital Gains Tax (CGT) Increase
There’s a lot of speculation that CGT on property sales could go up.
It might rise to 30% for everyone or possibly match income tax rates (up to 45% for top earners).
This would mean we’d make less profit when selling properties.
Inheritance Tax Changes
We might see the 40% rate increase.
The tax-free allowance (£325,000) could be reduced.
Inherited properties might also face extra CGT.
These changes could affect our estate planning and property transfer strategies.
Potential Opportunities
It’s not all bad news:
Labour’s plan to build 1.5 million new homes might create investment opportunities.
Development on brownfield and grey belt land could open up new areas for investment.
What This Means for Us
Short-term property prices might rise after Labour’s win.
Long-term, the increase in housing supply could stabilize prices.
We’ll need to rethink our strategies, especially when it comes to selling properties and inheritance planning.
Time-Sensitive Considerations
If CGT increases in April 2025, we might have a limited time to sell properties at current rates.
Our Thoughts
While there are challenges ahead, property investment is still a strong long-term strategy, with predictions of a 17.6% average price growth across the UK from 2024 to 2028.
So if you’re considering investing in property for a higher return on investment through a renovation project, higher yielding buy to let, or buying below market value, contact our friendly team and let’s have a chat 😁
Fill out a quick form here: bit.ly/wegotdeals
Call on 07959 969676 or 01462 34 11 77
Or pop in if you’re local. We’re at Eastway Enterprise Centre, 3 Paynes Park, Hitchin, Herts SG5 1EH
