Changes in Capital Gains Tax and Stamp Duty have hit UK Landlords hard.

Chancellor Jeremy Hunt has delivered his Autumn Statement, which he says will lead to "higher taxes" for everyone.

The following are some key tax changes:

The annual Capital Gains Tax exemption is being halved from ￡12,300 to ￡6,000 in 2023-24 and again to ￡3,000 in 2024-25. The new rules also mean that owners of second homes will not be able to deduct the cost of borrowing money against their tax bill when they sell.?

The government is cutting the dividend allowance from ￡2,000 to ￡1,000 next year and then to ￡500 from April 2024. In 2025, anyone who receives dividends above ￡50,000 will have to pay tax on them at a rate depending on how much other income they receive.

Without holding a referendum, local authorities can raise council tax by five percent. This is likely to put another strain on the finances of private tenants and could lead to an increase in the average council tax bill, which currently stands at ￡1,966.

The Stamp Duty cuts announced in September will end on March 31, 2025. Hunt says the tax breaks are for jobs and firms in the housing market. This is to help them through the current challenges and strengthen public finances in the long run.?

The Inheritance Tax thresholds will remain frozen for an extra two years, posing a large threat to the UK's homeowners. The inheritance tax threshold is currently ￡325,000 and a further residential nil rate band of ￡175,000 exists.?

The threshold at which the highest earners start paying the top rate of tax will be brought down from ￡150,000 to ￡125,140.?

From 2025, road tax will be introduced for electric vehicles to ensure that all motorists contribute to the cost of maintaining roads.

The government will increase oil and natural gas companies' tax from 65 to 75 percent of profits on UK operations until March 2028.

This change in Stamp Duty and Capital Gains Tax could have a significant effect on the UK property market, which is quickly becoming increasingly unaffordable for ordinary people. By making buying a house less accessible and less appealing, maybe the government is hoping prices will eventually fall back down again – something which the average joe property investor can't do on their own.

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