The chancellor Jeremy Hunt, who is currently delivering his 2024 Budget Statement, has just announced that capital gains tax is to be reduced from 28% to 24%. He says the move is predicted to increase revenues as there will be more property transactions.
He has also announced that the government is abolishing stamp duty relief for people buying more than one dwelling.
Additionally, the chancellor says he will scrap tax breaks which make it more profitable for second home owners to let out their properties to holiday makers rather than to long-term tenants to rent.
Hunt says he will abolish the furnished holiday lettings regime.
Interesting to see the Chancellor referencing the Laffer curve as justification for the cut in Capital Gains Tax.
Why not try a cut in Stamp Duty on a similar assumption ? Post-Covid, there was a sharp recovery in transactions (hence tax revenues) during the period June 2020 to July 2021 when there was a time-limited cut.
This may well have been partly due to pent-up demand following periods of lockdown, but if wedded to the idea of a low tax economy, surely this is worth a punt ?
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