Spring Budget 2024 – Impact on the Agricultural Sector
The Spring budget did contain a few announcements which will impact the agricultural sector and consideration should be given to whether action is taken now.
Spring Budget Summary 2024
Following the 2024 Budget, three key announcements that will be important to any tax payers falling in the following groups:
Anyone who lets a holiday cottage
Property developers/investors and
Non UK Domiciled individuals
Multiple Dwellings Relief – Spring Budget Update 2024
This stamp duty land tax relief is to be abolished with effect for transactions with an effective date on or after 1 June 2024. Transitional rules mean that MDR can still be claimed for contracts which are exchanged on or before 6 March 2024, regardless of when completion takes place
Abolition of the Furnished Holiday Let rules – Spring Budget Update 2024
For anyone who owns one or more Furnished Holiday Lets (FHLs), either directly or through a limited company this is a significant change. Until April 2025, if an individual owned and let out a furnished holiday let, broadly a holiday home let out to different individuals for short periods, there were a number of tax advantages that in many respect treated this activity as a trade rather than as an investment:
Changes to Non Domicile Rules – Spring Budget Update 2024
The new rules that apply from April 2025 are proposed to operate for income tax purposes such that if a non UK domiciled individuals comes to live in the UK after a period of 10 years consecutive non-residence, there will be full tax relief for a 4-year period of subsequent UK tax residence on FIGs arising during this 4-year period, during which time this money will remain outside the UK tax net and can be brought to the UK without an additional tax charge.
Right shares, right time?
For start up businesses, it is important to think very carefully about who initial “founder” shares are issued to and consider future “what if” scenarios and how they might be dealt with.