October 28th, 2024
On Wednesday 30th October, Labour Chancellor Rachel Reeves will deliver her first budget since Labour’s election win back in July.
As we approach the budget, it’s essential for homeowners to prepare for the upcoming fiscal changes that could have significant impacts on property ownership and mortgages.
At CMME, we know that being self-employed means greater flexibility, but it also means navigating financial shifts with precision.
Here are some subjects which may be touched upon in the upcoming budget, as well as how they could affect you as a homeowner or prospective buyer.
1. Changes to Capital Gains Tax (CGT)
Self-employed property investors and those owning multiple properties may need to brace themselves for potential adjustments to Capital Gains Tax. While initial fears suggested CGT could rise dramatically, it now seems likely that increases will focus on shares and non-property assets.
However, this doesn’t mean landlords and property investors are completely in the clear. Many have already begun selling Buy to Let properties, anticipating possible changes in CGT that might make holding onto these assets less profitable.
If you’re considering selling a second home, it’s important to evaluate the timing carefully to minimise your tax burden.
2. Stamp Duty Changes
Stamp duty could also see some significant shifts in this year’s budget.
First-time buyer stamp duty relief, currently set at £425,000, may revert to its previous level of £300,000 by April 2025. If you’re a first-time buyer looking to capitalise on this relief, it might be time to act before the threshold is lowered. As a contractor, understanding how to leverage the timing of these changes could save you a significant amount of money when purchasing property.
3. Council Tax Reforms
Council tax reforms could also impact homeowners, particularly those with high-value properties. There is speculation that the current council tax system could be overhauled in favor of a flat 0.5% tax based on the home’s value.
This would likely increase costs for homeowners in areas with higher property values, disproportionately affecting many self-employed professionals who often live in prime locations due to proximity to clients or networking opportunities.
4. Freedom to Buy Scheme and Mortgage Support
The Autumn Budget might also provide more clarity on the “Freedom to Buy” scheme, which Labour has proposed to help first-time buyers with permanent mortgage guarantees. If you’re self-employed and navigating the unique challenges of securing a mortgage, this scheme could offer additional support, although details are still emerging.
Preparing for the Autumn Budget
For self-employed professionals and contractors, these potential changes highlight the importance of staying ahead of fiscal policy shifts. At CMME Mortgages, we specialise in supporting independent workers like you through every step of the mortgage process, ensuring you can make the most informed decisions.
Whether it’s preparing for CGT increases, making the most of stamp duty relief, or exploring new schemes, our team is here to help you navigate the evolving financial landscape.
As we await the full details of the Autumn 2024 Budget, CMME stays devoted to helping you acquire the best possible mortgage deal regardless of your circumstances.
Contact us today to discuss how these potential changes could impact your homeownership journey, and how we can help you secure the right mortgage solutions tailored to your unique financial situation.