Many landlords have been in Halloween mode since Labour swept into power on 4^th July, hiding behind sofas, scared to look at the latest headlines forecasting what the Chancellor, Rachel Reeves, would brew up in the Treasury cauldron for her big day on 30 October.

Members will not need reminding that since George Osbourne served up S24 of the finance Act 2015 landlords have felt like sacrificial lambs as chancellors competed to see how they could burnish their standing by finding ever more devious ways of separating us from our hard earned profits; most recently a parting shot from Jeremy Hunt where the Furnished lettings Relief will be withdrawn from the end of this tax year.

The most leaked budget in history (with the Americans were briefed before parliament) has finally come to pass.

Well, Tell all . . .

From a landlord’s perspective, there’s a big sigh of relief as the budget only had one specific measure to which would have made those looking to grow their portfolios take a sharp intake of breath:

The SDLT surcharge on additional dwellings (second properties( rose to 5% from 3% with immediate effect.

This is compounded by the chancellor allowing the exemption on the initial band to expire.

Main SDLT thresholds for residential property

From 1 April 2025

• As previously announced there is a rollback to the previous rates as of 22 September 2022.
• A 2% rate of SDLT will apply to residential property with a value of £125,000-£250,000.
• The 5% rate will continue to apply to residential property valued at £250,001-£925,000.

SDLT relief: First-Time Buyers (FTB)

From 1 April 2025

• As previously announced there is a rollback to the previous rates as of 22 September 2022.
• The threshold for FTB relief reduces: FTBs receive a 5% discount on the purchase of a home costing £250,000 – £425,000 from 1 April 2025 (it was £250,000 – £625,000).

SDLT Residential Leases

From 1 April 2025

• As previously announced there is a rollback to the previous rates as of 22 September 2022.
• The threshold at which SDLT is charged reduces to £125.000 from £250,000.

No Change, for a change

CGT (capital gains tax) on residential property remains at 18% / 24% but those with gains on other assets will now have to pay these rates (previously 10% / 20%)

Those who have decided to sell furnished holiday lets should check with their tax advisor, but my understanding is that they can still claim BADR (business asset disposal relief) on sales before 6 April.

Inheritance Tax

• IHT thresholds will be frozen until 2030.
• Inherited pensions will be liable to IHT from 2027.
• Agricultural Property Relief (APR) and Business Property Relief (BPR) will be reformed.
• APR will also be extended to include land managed under an environmental agreement with the government.
• The government aims to invest £52 million in digitalising the IHT system from 2027-28
• From 6 April 2025:

Those who had planned to head off to live in the sun for CGT and IHT purposes should review their arrangements, as the current domiciled-based regime will be replaced with a new residence-based regime following the abolishment of the non-UK domiciled rules.

Anything else for me to pay?

If you are employer, you will have the triple witching in the form of :

employer NICs payable at 15% from £5,000

minimum wage rising 6.7% to £12.21ph

upcoming changes to worker rights

and, lest you forget, we will continue to endure the stealth tax of frozen personal and other allowances where wage and rent rises risk pushing you to a higher tax band.

So nothing good

Well, there was a small cut of 1.7% on draft beer while you pause over a pint in relief that she did not reverse the cut in fuel duty, or its annual indexation. Furthermore, the Budget committed to extending 100% First Year Allowances for electric cars and charge points for a further year.

On the upside

Many tenants will have received an income boost

State pensions +4.1%

Minimum wage +6.7%

There was no comment on LHA rates but landlords should be able to match rent increase to the CPI +1% approved for the social sector.

Warm Homes grant gets £3.4bn over the next 3 years, mainly for low income and social tenants.

For those looking for the next opportunity

HS2 – The tunnelling to complete the HS2 leg to Euson got the green light, so west London landlords can look forward to the return of contractors and the redevelopment around the route once works near completion.

East West Rail – the link from Oxford to Cambridge will commence, with completion expected by 2030

Northern Rail, Tram and Light Rail projects were given the sign off

School and Hospital building projects have funding.

A quick search online will give more details of these projects, allowing those looking to buy in these areas to get a better understanding of the potential uplift from these projects.

Finally

Regular bookkeeping is best practice, ensuring your records are up to date and it supports you as you manage your business. It is also a good habit to get into now as it is unlikely that the government will push back the April 2026 date for MTD (making tax digital).