The government is set to increase tax revenues to help deal with the recession and generate more funds, and how these tax rises will be implemented will affect how much investors can earn from properties that they’re considering selling.

The biggest tax that property investors should be concerned with is the change to Capital Gains Tax, which is the tax you pay on something that has increased in value when you sell it.

The new Budget will see the Capital Gains Tax allowance slashed from £12,300 to £6,000 as of April 2023, followed by a further cut to £3000 in April 2024.

For property investors, this means when you sell an investment property you will need to pay tax on a higher portion of the profit you make.

This gives investors a short amount of time to make the most of capital appreciation and sell any investment properties they are considering moving on from before the tax hits in less than six months’ time.

Considering the increase in taxes for investors, it may be best to hold onto any property in your portfolio for now if possible while the UK recovers from recession, and only sell the properties if this higher rate of Capital Gains Tax is reduced.

All in all, the latest Autumn Budget is encouraging for those looking to invest in property in the UK right now. If you want to make savings on stamp duty tax, or purchase property at a lower rate if you’re an overseas buyer, now is the time to invest.

We have a number of fantastic deals currently available for investors, with below-market value prices and affordable deposits available. Our latest investment opportunity, Vantage Point, offers an attractive 7% rental return that is not to be missed.

If you want to keep up with the latest goings on in the UK property market, and how major events such as the Autumn Budget will affect it, be sure to keep an eye on our property blogs.