Capital gains tax (CGT) annual exempt amount
The CGT annual exempt amount for individuals and personal representatives will be cut to £3,000 for 2024/25. The annual exempt amount for most trusts will likewise fall to £1,500 (minimum £300) as previously announced. The allowance will no longer be index linked.
From 6 April 2024, the higher rate of CGT for residential property disposals will be cut from 28% to 24% while the lower rate (for any gains that fall within an individual’s basic rate band) will remain at 18%.
SAVER
Don’t waste your CGT annual allowance. The annual exempt amount for personal capital gains will be reduced from £6,000 to £3,000 for 2024/25. You should consider realising gains before the end of the tax year and reinvesting.
Inheritance tax (IHT)
The IHT nil rate band will remain at £325,000 from 2024/25 to 2027/28, as previously announced. The residence nil rate band (RNRB) likewise stays at £175,000 and the RNRB taper continues to apply until April 2028 if the value of a deceased person’s estate is greater than £2 million.
Payment of IHT
From 1 April 2024, personal representatives of estates will no longer need to have sought commercial loans to pay IHT before applying to obtain a ‘grant on credit’ from HMRC.
Stamp duty land tax (SDLT): abolition of multiple dwellings relief
Multiple dwellings relief, a bulk purchase relief in the SDLT regime for England and Northern Ireland, will be abolished from 1 June 2024. Property transactions with contracts that were exchanged on or before 6 March 2024 will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before 1 June 2024.
SDLT: first-time buyers’ relief for nominee purchasers
The rules for claiming first-time buyers’ relief from SDLT in England and Northern Ireland will be amended from 6 March 2024. Individuals (including victims of domestic abuse) who buy a leasehold residential property through a nominee or bare trustee will be able to claim first-time buyers’ relief. Before this change the individual was not treated as the purchaser and so was not entitled to the relief.
Annual tax on enveloped dwellings (ATED)
| Property value | Charge for tax year 2024/25 | Charge for tax year 2023/24 |
| More than £500,000 but not more than £1m | £4,400 | £4,150 |
| More than £1m but not more than £2m | £9,000 | £8,450 |
| More than £2m but not more than £5m | £30,550 | £28,650 |
| More than £5m but not more than £10m | £71,500 | £67,050 |
| More than £10m but not more than £20m | £143,550 | £134,550 |
| More than £20m | £287,500 | £269,450 |