The UK’s investment landscape is undergoing one of the most significant tax shake-ups in recent history. Investors—both domestic and international—must now navigate a system that is becoming increasingly complex, costly, and restrictive.
If you’re a property investor, wealth manager, or high-net-worth individual, the stakes are higher than ever. Without a well-structured investment and tax strategy, you risk losing a substantial portion of your returns to increasing capital gains tax (CGT), stamp duty surcharges, and newly introduced inheritance tax (IHT) obligations.
A Changing Investment Landscape with Rising Tax Burdens
Historically, UK investors and international non-domiciled individuals enjoyed a range of tax efficiencies that made the UK an attractive place to invest. These included lower CGT rates, SDLT exemptions for certain structures, tax advantages for furnished holiday lets, and the ability for non-doms to shield foreign income from UK tax.
But with the Autumn Budget 2024, the UK government has introduced a raft of tax increases and regulatory changes designed to increase tax revenues from investors. These include:
1. Capital Gains Tax (CGT) Increases
The CGT rate for higher-rate taxpayers is increasing from 20% to 24%, affecting property and investment disposals from 30 October 2024.
Investors in business asset disposal relief (formerly entrepreneur’s relief) will see their CGT rate increase to 14% in 2025 and 18% in 2026.
This cuts into investment returns, making it harder to achieve the same profits as before.
2. Stamp Duty Land Tax (SDLT) Hikes
The SDLT surcharge for additional properties is rising from 3% to 5%, significantly increasing acquisition costs.
Companies and overseas entities acquiring UK property above £500,000 now pay 17% SDLT, up from 15%.
For investors scaling property portfolios, this creates a much higher entry cost.
3. Abolition of the Furnished Holiday Lettings (FHL) Regime
The FHL tax regime is being scrapped from 6 April 2025, meaning that:
Short-term rental investors lose capital allowances that allowed tax-efficient write-offs.
Holiday let profits will be taxed at higher rates under standard rental rules.
This diminishes the appeal of short-term rental investments, which were previously highly profitable.
4. Non-Domicile Taxation Overhaul
The government is abolishing the remittance basis of taxation for non-doms.
From 6 April 2025, non-doms will be taxed on worldwide income and gains, unless they qualify for the Foreign Income & Gains (FIG) regime, which offers only four years of relief.
Offshore trusts and income previously exempt from UK tax will now be within scope, leading to higher tax liabilities on global wealth.
5. Inheritance Tax (IHT) Changes
The UK is shifting to a residence-based IHT system, meaning that long-term UK residents may owe tax on overseas assets.
This means non-doms can no longer shield assets in offshore trusts from UK IHT.
Without proactive estate planning, high-net-worth families will face significant tax liabilities on inherited wealth.
The Cost of Inaction
John, a property investor, sells a buy-to-let property in November 2024 for a £500,000 gain. Under the old 20% CGT rate, he would have paid £100,000 in CGT.
But under the new 24% rate, he now owes £120,000—an extra £20,000 taken directly from his profits.
Scenario 1: Property Investors Facing Higher Costs
Sarah runs a portfolio of holiday lets that generated tax-efficient returns through the FHL regime.
With its abolition in April 2025, she can no longer claim capital allowances, and her taxable income increases, leading to a much higher tax bill.
Scenario 2: Short-Term Rental Investors Losing Tax Breaks
Sarah runs a portfolio of holiday lets that generated tax-efficient returns through the FHL regime.
With its abolition in April 2025, she can no longer claim capital allowances, and her taxable income increases, leading to a much higher tax bill.
Scenario 3: Non-Dom Investors Facing Worldwide Taxation
A wealthy non-domiciled investor previously sheltered £10 million in overseas income from UK tax.
From April 2025, that entire sum becomes taxable in the UK unless they restructure.
Without proper planning, they face a tax bill of up to £4.5 million on foreign income.
A Proactive, Tax-Efficient Investment Approach
To protect and maximise investment returns in this changing landscape, investors must take immediate action to restructure holdings, optimise tax planning, and adapt their strategies.
At Rich Estates, we provide a fully integrated investment and advisory service, ensuring our clients stay ahead of tax reforms and continue to build wealth strategically.
How We Help Investors Navigate Tax Reforms
✔ Tax-Efficient Property & Land Sourcing We identify high-return investment opportunities across the UK and Europe that align with new tax laws and incentives.
✔ Strategic Legal & Tax Structuring Our network of top-tier accountants and legal professionals helps minimise tax exposure while ensuring full compliance with evolving regulations.
✔ Non-Dom Advisory & Relocation Support For non-domiciled investors affected by worldwide taxation, we provide bespoke solutions for residency, business structuring, and tax-efficient wealth management.
✔ Estate Planning & IHT Mitigation Given the shift to residence-based inheritance tax, we help restructure estates to protect generational wealth and reduce IHT liabilities.
✔ Wealth & Financial Management We assist in restructuring real estate portfolios, ensuring they are optimised for the latest tax reforms, capital growth, and financial sustainability.
Why Work With Us?
✔ Expertise in the New Tax Landscape We understand these tax reforms inside and out—and we know how to protect your investments from unnecessary tax burdens.
✔ Proven Strategies for Wealth Protection Our investment structures are built to preserve capital, optimise returns, and ensure long-term financial security.
✔ End-to-End Investment Support From acquisition to legal structuring and financial management, we offer a fully managed service so you can focus on growth while we handle compliance and strategy.
Take Action Before It’s Too Late
The UK investment landscape is changing fast, but investors who adapt quickly can still thrive. The key is to plan ahead, restructure strategically, and seek expert guidance.
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Book a consultation with us today to secure your financial future with a tax-smart investment strategy.
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