Comment from Offa on the Autumn Budget
October 31, 2024
BIRMINGHAM, 31 October 2024 – Commenting on the Autumn Budget, Amir Firdaus, Chief Financial Officer at Offa, the UK’s first Sharia-compliant bridge finance fintech and buy-to-let finance provider, said: “Buy-to-let landlords across the country must have breathed a sigh of relief when the Chancellor confirmed that residential property is exempted from the Capital Gains Tax (CGT) hike. For everyone else it is going up 10% to 18% for the lower rate and 20% to 24% for the higher rate, but residential property rates remain unchanged at 18% and 24%.
“As providers of ethical Islamic property finance, we also welcome the changes to alternative finance tax rules. This puts products such as ours on a level playing field with conventional financing in relation to their tax treatment, meaning that customers entering into qualifying alternative refinancing arrangements no longer pay CGT, Corporation Tax or Income Tax.
“In more good news, the Chancellor also announced a £5 billion investment to help deliver the 1.5 million homes promised over this Parliament, along with a £500 million boost to the Affordable Homes Programme to build up to 5,000 additional affordable homes. £3.2bn will also be put into the affordable home program and there is a further £3bn in support of the small house builders in the form of housing guarantee schemes to support the private housing market.
“While there is a Stamp Duty hike for second-home buyers and landlords from 3% to 5%, we hope that this Budget will be encouraging to everyone in the property market – from home buyers to buy-to-let landlords and tenants.”
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