What Will the Autumn Budget Mean for Thanet Homeowners?

PM Keir Starmer has already issued a warning that next week’s Budget will be painful... to help fill a ‘£22 billion black hole’ of debt. So, could this Budget be painful for homeowners? In this article, we’ll take a look at what Chancellor Rachel Reeves might be planning.

Capital Gains Tax

It seems highly likely that there will be changes to capital gains tax (CGT) – the tax you pay on gains you make when selling an asset, such as a property or business.

Since your own home is exempt from CGT, thanks to primary residence relief, any changes to CGT shouldn’t affect that. But they could affect anyone who owns buy-to-lets, a second home or a holiday home.

Inheritance Tax

It also seems highly likely there will be changes to inheritance tax (IHT) – the tax your beneficiaries pay when you leave money and other assets to them when you die. In practical terms, changes here are most likely to concern older homeowners who have started thinking about how best to leave their homes and money to their children.

Stamp Duty

Stamp duty is something that chancellors have loved to tinker with over the last few years. There are very few rumours suggesting possible changes this time around. Currently, a temporary increase of £125,000 in the stamp duty threshold, introduced in 2022, means it only kicks in at £250,000 or £425,000 for first-time buyers. This concession is due to end in spring 2025.

Council Tax

Council tax isn’t usually something that is set in the Budget as it’s a local council matter. But there have been rumours that new, higher council tax bands could be introduced for more expensive properties or even a new ‘wealth tax’ for the most expensive.

Final Thoughts

In her Budget speech, the Chancellor will no doubt take full advantage of the recent good news on inflation (down to 1.7% in September). Chances are it won’t make much difference to the tax rises announced – although it may help soften the blow for taxpayers.

If you’d like a summary of what actually happens in the Budget, then check back here on 30 October. We’ll be summarising the measures that affect homeowners in an easy-to-understand way.

If you’re concerned about what the Budget might mean for your home and your money, don’t make any hasty decisions. We’d strongly recommend you take advice from an experienced estate agent and a financial adviser.

About Cooke & Co

Cooke & Co has been providing estate agency services in Thanet since 1992, covering Margate, Broadstairs, Ramsgate, and surrounding areas.

Contact us:

• Margate Office: (01843) 231833
• Ramsgate Office: (01843) 851322
• Broadstairs Office: (01843) 600911

Visit our website at www.cookeandco.com or email us at enquiry@cookeandco.com.