The Bank of England has cut the bank base rate to 4.75% for the second time this year, marking its lowest level in over a year. This reduction will likely affect mortgage rates, which are expected to adjust in the coming weeks, as the base rate influences the interest rates lenders charge borrowers.
The recent budget has confirmed that stamp duty relief thresholds will change from 1 April 2025, in line with the government’s plan to raise £40bn for public spending. These changes will make buying a first property or moving up the property ladder more expensive for first-time buyers and home movers. However, there are savings to be made if purchases are completed before the deadline. Additionally, second home buyers and investor landlords will face higher stamp duty rates at every threshold.
In positive news for property owners and investors, the budget confirmed there would be no increase in Capital Gains Tax (CGT) on the sale of residential property. The rates will remain at 18% and 28%, providing certainty for landlords who were anticipating higher taxes. Furthermore, there was no CGT increase for overseas investors. However, from April 2025, individuals who have been UK residents for no more than 10 years out of the previous 20 will be subject to inheritance tax (IHT) on UK assets only. The inheritance tax “nil-band rate” will remain unchanged for UK residents.
