Yesterday’s Autumn Statement announcements included four key changes which will hit landlords and the private rental sector.

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Capital Gains Tax annual exemption to be reduced from £12,300 to £6,000 in 2023- 24 and halved again in 2024-25 down to £3,000

This will definitely hit BTL landlords hard, Tim Walford Fitzgerald, tax partner at HW Fisher says: “This is bad news for landlords, second home owners and those looking to sell their property as capital gains tax is applied at a much higher rate for residential property sales. Expect to see a decline in the number of disposals – people will hold off from selling their assets during unfavourable conditions. Or, if there is a delayed introduction for the new threshold, look out for a quick spike in sales as individuals and families try to beat the new implementation date.”

This means that from 2025 many incorporated BTL landlords will have to pay tax on their dividends dependent on other income streams.

The five per cent increase allows a three per cent rise and an additional 2 per cent if they have social care responsibilities. Although not an obvious direct threat to landlords but it will impact private tenants having to contend with cost of living increases and ridiculous energy price hikes( profits up for firms) and may be a final straw in putting them behind with rent.

Jeremy Hunt says: “This is to help the jobs and firms that rely on the housing market through the current challenges, while strengthening the public finances in the longer term.”

Former Chancellor Kwasi Kwarteng increased residential purchases’ Stamp Duty threshold by 100 per cent from £125,000 to £250,000 and for first time buyers from £300,000 to £425,000 which will be allowed on purchases of up to £650,000.