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Spring Budget 2024: CGT on Disposals of Residential Property
Individuals disposing of UK residential property, landlords, second home owners, and taxpayers affected by the Spring Budget 2024 Capital Gains Tax rate change.
The Spring Budget 2024 announcement reducing the higher rate of Capital Gains Tax on residential property disposals and the effective date of the change.
The change in rate from 28% to 24% affects the amount of CGT payable on qualifying residential property disposals from 6 April 2024. Timing of completion determines which rate applies.
Spring Budget 2024 Announcement
In the Spring Budget 2024, the Chancellor announced a reduction in the higher rate of Capital Gains Tax on disposals of residential property.
The higher rate has been reduced from 28% to 24%.
The basic rate of 18% remains unchanged.
The change applies from 6 April 2024.
What Has Changed
- The higher rate of CGT on residential property disposals is reduced from 28% to 24%.
- The basic rate of 18% remains unchanged.
- The change takes effect from 6 April 2024.
The rates of 18% and 28% remain unchanged for carried interest.
Effective Date
The reduced 24% rate applies to disposals completed on or after 6 April 2024.
The applicable rate is determined by the date of completion.
Residential Property vs Other Assets
The rate change applies to disposals of residential property.
Different CGT rates apply to other types of assets.
The basic and higher rate applicable to a disposal depends on the individual’s total taxable income and the amount of basic rate band available in the tax year of disposal.
Practical Considerations
- The completion date determines whether the 24% or 28% rate applies.
- The reduction affects the amount of Capital Gains Tax payable on qualifying residential disposals.
- The basic rate of 18% remains unchanged.
Before You Complete a Disposal
- Confirm the expected completion date.
- Review the applicable Capital Gains Tax rate.
- Calculate the estimated gain based on current rates.
- Consider the timing impact where completion falls close to 6 April 2024.
The timing of completion directly affects the Capital Gains Tax rate applied.
Make an Informed Decision Under the New CGT Rates
The Spring Budget 2024 introduced important changes to Capital Gains Tax on residential property disposals, directly affecting the rate applied to certain gains. If you are planning to sell a rental or second home, timing and accurate calculation now matter even more. Obtaining up-to-date capital gains tax advice London ensures you understand how the revised rates impact your projected liability and reporting obligations. Cigma Accounting, advising clients from our Hammersmith and supporting property owners in Stamford Brook and Gunnersbury, provides clear guidance tailored to current legislation.
Rate changes must be considered alongside relief eligibility, ownership structure, and the 60-day reporting requirement to avoid unnecessary penalties. Consulting an experienced tax accountant in London allows you to assess exposure before exchange of contracts rather than after completion. Cigma Accounting offers practical, technically robust support with physical offices across London, helping you respond confidently to legislative changes while protecting your overall tax position.
AFFECTED BY THE SPRING BUDGET 2024 CGT CHANGES?
Updates to Capital Gains Tax on residential property disposals may alter the tax due on your sale. Understanding how the revised rates apply to your circumstances can help you plan effectively and avoid miscalculations.
Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.
