- Property professionals unpick the Budget
- RICS CIL Index 2025 Announcement
- Elliott makes a difference
- E3 Consulting wins 'Best Independent Tax Consultancy Firm'
- SPA Annual Golf Day 2024
- We will be at the South East Construction Expo
- Finalist in 2024 Taxation Awards
- Planning Enforcement Changes to take effect from 25 April 2024 - LURA2023
- Spring Budget 2024
- Pilgrim's Progress: VOA Appeal Decision
- Deadline looming for registration of Scottish property owners
- Nowhere to hide for Furnished Holiday Let owners
- 100% Full Expensing made permanent
- SPA Clay Shoot 2023
- We are exhibiting at UKREiiF 2023
- Welsh Freeports - The two winning bids are...
- Chancellor announces Full Expensing
- 100% Tax relief confirmed for two Scottish Green Freeports
- Making Your Furnished Holiday Lettings More Profitable
- Happy New Year 2023
- Second U-Turn in Urenco Chemplants Case – Court of Appeal Decision
- How Specialists help to Save through Property Tax
- E3 Consulting on the move in London
- Autumn Statement (November): impact on capital allowances
- December Roundtable - Community Infrastructure Levy & Land Remediation Tax Relief
- E3 goes to top with calls for planning re-think
- The Chancellor’s ‘Mini Budget’ – A Tax Bonfire!
- HM Queen Elizabeth II
- Gardiner v Hertsmere - Court of Appeal Judgment
- E3 Consulting's new main office in Wimborne
- Green light for Freeports
- Buried treasure?
- And the winner is...
- Cavernous divide in ‘plant’ arguments
- And the finalists are…
- E3 Consulting puts property tax on the radar
- Help E3 Consulting grow in a nurturing environment
- Spring Statement 2022 – Real Estate & Construction Update
- E3 joins the dots with Building People
- Property Marketing Awards 2022 – Celebrating 30 years of PMA
- Navigating choppy waters
- E3 helps GPs go green with trailblazing surgery
- CIL – New Research Lays Bare Planning Cost
- Webinar success as spotlight shines on Super-deduction
- CIL appeal win saves householder £22,000
- Business Analyst Flo joins E³
- Budget Day Autumn 2021
- Firing on all cylinders
- LRTR Boost your Tax Savings & Unlocking Toxic Land
- CIL by Numbers!
- Shining the legal spotlight on capital allowances
- UPDATE: 130% Super-deduction to be available for landlords
- Specialist speakers announced for CIL webinar panel discussion
- Happy 18th birthday…to us!
- Land remediation myths cleared up at conference
- E³ Consulting – 18th anniversary
- Tax Day 23 March 2021 … over hyped & under whelming!
- Super-deduction…super insight from E³ Consulting’s webinar
- Budget 2021 – Update – Super Deduction
- Budget 2021 Update – Significant tax breaks for freeports announced
- Budget – 2021 – Small Profit Corporation Tax Rate
- UK FREEPORTS - Will Tax Incentives Fulfil Their Purpose?
- E³ Consulting Support Minstead Trust’s Online Christmas Raffle
- E³ Consulting’s Autumn Property Tax Webinars
- £1m AIA Extension
- Alun Oliver becomes CEDR Accredited Mediator
- Property & Construction Update
- Community Infrastructure Levy (CIL) - New Year, new rules!
- Budget 2020 - Wish list for Eco friendly Buildings
- Todd Arnison joins YEP Southampton committee
- Welcome to our Winter update!
- RICS Community Infrastructure Levy Talks
- University Award for Apprentice Todd
- Toasting a Record Year for E3 Consulting
- It was 'Not Too Taxing' for the E3 Team at the SPA Clay Shoot
- Finalist in 2019 Accounting Excellence Awards - Specialist Team of the Year
- Finalist in 2019 Taxation Awards - Best Independent Tax Consultancy Firm
- Celebrating 15 Years in Style
- Consulting Boutiques: A Different Perspective on Consulting
- Studying Modern Languages: what skills do you gain and how are these relevant in work?
- It's all in the Mind
- Capital allowance changes consultation
- International Invasive Weed Conference
- Significant tax savings illuminated at London landmark
- So close for Todd in national award
- Taxing matters for property sector - Seminar 17 October 2018
- National award shortlist for apprentice Todd
- Three top tips for organising a fundraising event - and how these are relevant in business
- Alun takes seat on CLA regional board
- E3's Tax Trappers at it again at the SPA Clay Shoot
- Property Tax Update at Athelhampton House
- Welcome to our New Property Tax Surveyor
- Success at the JCI UK National Convention 2017
- Defeat for Taylor Wimpey on Builder's Block VAT Claim
- Non-Resident Landlords (NRL) to move into Corporation Tax Regime
- Joining JCI Southampton as a Corporate Partner
- Signatory to the RICS Inclusive Employer Quality Mark
- E3 Consulting Sponsors Hampshire Hot Shots!
- S.O.S.! Tackling the Housing Crisis, CIL and Build to Rent
- International Women's Day: Making a Commitment to Diversity and Equal Opportunities
- CPD Property Tax Talks
- Why E3 Consulting Employs Interns
- Re-joining the Dorset Chamber of Commerce & Industry
- Welcoming New Interns to E3's Team
- Sponsorship of Alresford Town Football Club
- Finalist in 2015 Taxation Awards - Tax Consultancy Firm
- University of Warwick's Proactive Support of SME Businesses
- Property Taxation Specialist - Finalist in 2014 Taxation Awards
- VAT Specialist, Martin Scammell, Wins Indirect Tax Award
- Capital allowances claims using sampling for fixtures: HMRC Brief
- Business Property Relief on FHLs
- Victory in the 9th annual Solent Property Tennis Tournament
- Industry Response to HMRC's Capital Allowances proposals
- Winning Partnership with Rose Bowl Plc
- E3 Consulting Wins at Taxation Awards 2011
- E3 Consulting Shortlisted for Lexis Nexis Taxation Awards 2011
- Property Taxation Planning Opportunities - November 2010
- E3 Consulting Crowned Mixed Doubles Tennis Champions!
Spring Budget 2024
Spring Budget 2024 had some positive market sentiment with minor changes to property tax.
As usual our team were following the Budget announcement by the Chancellor, Jeremey Hunt, with keen ears today, listening out for key industry updates and those announcements that affect our services and clients. We have had a busy few years listening to the Budget announcements, with significant changes to property tax, specifically capital allowances, happening in nearly all of the fiscal events since the end of 2020.
Today (06 March 2024) however was a more steady day, with the Chancellor's announcements clearly aimed at voters, in what is expected to be an election year. The main announcement being the saving of £900 per year for the average employee, following a 2% cut in National Insurance Contributions, combined with the Autumn Statement’s prior 2% cut.
The good news is that comes with some positive market sentiment, with the Office for Budget Responsibility (OBR) expecting the UK economy to grow 0.8% this year, and 1.9% in 2025, following the recent statement of consecutive quarters of negative growth. Along with some positive news for investment with inflation now down to around 4% and this expected to fall below 2% in 2025. This bolstered by AstraZeneca’s commitment to £650 million of investment in Liverpool and increasing their presence in Cambridge.
The Chancellor also announced an increase in the VAT threshold, up from £85,000 to £90,000. Albeit, this was the first increase in seven years, hence making it £100,000 or £120,000 may well have had more of an impact in removing many more SME businesses from the bureaucracy of VAT.
Property tax was somewhat of a middling agenda in the Spring Budget 2024 – many of the headlines here stolen by abolishment of incentives rather than tax cuts, although the Chancellor did announce a reduction in the higher rate of property Capital Gains Tax (CGT) from 28% to 24%.
Along with the abolition of the Multiple Dwellings Relief for Stamp Duty Land Tax (SDLT), we also saw time called on tax relief for Furnished Holiday Lets (FHLs) from 06 April 2025.
FHL Capital Allowances Abolished
Capital allowances have long been available on FHLs, a caveat to the usual entitlement restriction for dwellings, an incentive that could allow the offset of large portions of taxable income from capital investment in the properties – sometimes in excess of 60% of the capital spend. However, there has been a cloud looming over FHLs since Brexit, creating uncertainty around the relief that was available against both UK FHL investment and across the European Economic Area. Thus, it is not a change in measures that comes entirely out of the blue.
The Chancellor’s official position on this from the statement is to drive a transition to having better availability of longer term tenancies, where housing availability is becoming increasingly scarce. However, reducing or removing tax relief that is otherwise unavailable on residential properties does not really provide a significant impact to instigate change, especially where the profitability of holiday homes – advertised on such places as Airbnb – is substantially higher than the longer-term Assured Shorthold Tenancy (AST) rental alternative. This change may not be welcomed by those operating in the rural economy or by the tourism sector, which may just see this as more tax take.
It is therefore important to ensure that any current or past FHL expenditure has been properly analysed, to take advantage of accelerated capital allowances, before this tax relief is lost for good.
Full Expensing Amendment
Finally, a minor amendment to capital allowances, following lobbying from industry, the Full Expensing First Year Allowance (100% main, and 50% special rate, pool expenditure) will be extended to leased assets, subject to draft legislation and affordability. It has been widely discussed in the marketplace that only allowing those who own capital assets to benefit from the accelerated relief unfairly disadvantages those who cannot afford to invest heavy sums buying new equipment – the Chancellor addressed this with this measure.
Full Expensing is however still only available to UK Corporation Tax payers, on expenditure on new assets. Therefore, this measure does only bring a small number of businesses into the fold and could have benefitted a far greater majority having also been extended to Income Tax payers, such as partnerships of doctors, the farming industry and professional services firms.
Freeports & Investment Zones
The extension to Freeport tax reliefs announced at the Autumn Statement 2023 have also been confirmed. The sunset date of 30 Spetember 2031 will apply across English Freeport tax sites, with a 10-year window to claim reliefs also agreed with the Scottish and Welsh Governments, meaning tax reliefs will be available until 30 September 2034 for Scottish Green Freeports and Welsh Freeports tax sites. A welcome change given that much of the intial 5-year period, originally until 30 September 2026, had been eaten into while the new Freeports cut through the red tape of getting set up, with no opportunity to make use of the tax reliefs until this had been completed.
Further details on how the £160 million funding envelope will be used by Investment Zones in Greater Manchester, Liverpool City Region, North East of England, South Yorkshire, West Midlands and West Yorkshire have also been released. Also confirming the Tees Valley Investment Zone will focus on the digital and creative sectors; additional details for the Tees Valley and East Midlands Investment Zones will be announced shortly.
Investment Zones will also be extended from five to ten years in Scotland and Wales, matching their English counterparts, following the Autumn Statement 2023 announcement. Full details of the four Scottish and Welsh Investment Zones will be announced later in 2024. Details on the Northern Ireland Enhanced Investment Zone will be published soon.
Next Steps
If you would like to discuss how any of the Budget announcements affect your investments, then please do contact the team on 0345 230 6450 or hello@e3consulting.co.uk with any queries or for assistance. We look forward to speaking with you soon.
Share this page
Related Pages
RSS
- This page can be found in the following news feeds:
- E3 Consulting News