Our 2024 Budget Summary is now available if you click here –
The Budget was delivered with some panache but with few tax surprises. Most of the news was leaked including plans to phase on preferential treatment for “non-doms” (those whose family ties stared outside the Uk, broadly) and the cut in national insurance. Of course, with the Scottish Government increasing taxes the full benefit isn’t so apparent here. Our firm was particularly interested in the plan to treat holiday letting in the same way as other landlords for tax. At the moment those engaged in furnished holiday letting obtain proper tax relief for interest on borrowings and capital allowances for equipment and plant. The details aren’t yet clear and the change is for 2025, but we are concerned about this change as whilst it may help encourage some landlords to sell to local residents in areas of housing shortfall, the reality is that much of Scotland is made up of rural communities where tourism is vital and a loss of self catering holiday homes as people give up letting would be a negative for them. We’re keen to see the details and to think through the impact for those clients affected.
It’s also worth remembering the previous announcement that sees the annual tax free capital gains exemption at only £3,000 from April 6th this year – which means many more clients with small gains will need to complete tax returns going forward.
