UK and International Tax news
Finance (No 2) Act 2024 receives Royal Assent
Wednesday 12th June 2024
The Finance (No 2) Bill 2024 received Royal Assent on 24 May 2024, becoming the Finance (No 2) Act 2024.
The Finance (No2) Act 2024 includes some of the announcements made by the Chancellor in his Spring Budget, in particular:
- increases in the thresholds relating to the High Income Benefit Charge to £60,000 and £80,000 from 2024/25.
- reduction in the CGT rate of 28% applying to residential property gains to 24% with effect for disposals made on or after 6 April 2024.
- abolition of Multiple Dwellings Relief for SDLT from 1 June 2024.
- changes to the Transfer of Assets Abroad legislation with effect from 6 April 2024 targeting individuals who attempt to circumvent the anti avoidance rules by using a close company to transfer assets abroad.
Following the General Eelection announcement, other key Spring Budget measures left out of the Finance (No2) Bill have been abandoned. These include the proposed reform to the non UK domiciled tax rules and the abolition of the furnished holiday lettings regime.
Should the Conservatives win the July election, it is likely that the non dom tax reform will reappear in an Autumn Budget along the lines previously proposed, followed by legislation. Were Labour to win, its detailed proposals for non dom tax reform are more likely to appear after any early emergency budget followed by draft legislation in 2025.
The abolition of the furnished holiday lettings tax regime would remove the tax advantage for landlords who let out short-term furnished holiday properties over those who let out residential properties to longer-term tenants. This was to take effect from April 2025 with an anti-forestalling rule applying from 6 March 2024. However, legislation has not been included in the Finance (No 2) Act 2024 and therefore, for the time being, the FHL tax regime is expected to stay.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.
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