Please find below a summary of the Spring 2024 Budget and latest council tax news.

Changes to Council Tax Empty Property Premium in England 

New rules on long term empty residential properties in England will come into effect on 1 April 2024, which will mean a property will pay double council tax if it has been empty for 12 months, (this is already the case in Wales and Scotland) rather than the current 2 years.  There are 3 exceptions to note: 

  1. Properties undergoing probate – this may be relevant to members who have been bequeathed property by donors. 
  2. Properties being actively marketing for sale or let – this will be relevant to all members who have empty properties and are looking for residents. 
  3. Empty properties undergoing major repairs or structural alterations. 

All 3 exceptions can provide up to another 12 months and The Almshouse Association considers (2) and (3) are of most relevance to members.   

The Association would urge members to keep records of any active marketing activities they are doing to fill vacancies, as well as major repairs and structural alterations. Should members have difficult in filling vacancies, please do not hesitate to contact our Member Services team to arrange for an advertisement to be posted on the Association’s website. 

Further details on the Council Tax premium for empty homes in England can be found here.

Spring Budget: 6 March 2024 

There were several announcements in the Budget which The Almshouse Association considers are of interest, which we will report on further, once we have more detail. 

  • 3.23 Following on from the ÂŁ188 million allocated to housing projects in Sheffield, Blackpool and Liverpool at the Convention of the North on 1 March 2024, the Spring Budget allocates over ÂŁ240 million to housing projects in London, unlocking up to 7,200 homes in Barking, New Life Sciences Hub and up to 750 homes in Canary Wharf.  Additionally, a new ÂŁ20 million investment in social finance will build up to 3,000 new homes and improve capacity of local community groups to deliver housing. 
  • 5.60 Community Housing – The government is announcing investment of ÂŁ20 million in a social finance fund to support the development of community-led housing schemes over ten years, subject to a business case. 

Also of relevance to Registered Social Housing Providers:  

  • 5.69 Stamp Duty Land Tax: Acquisitions by Registered Social Landlords and public bodies – Legislation will be updated to ensure that from 6 March 2024, registered providers of social housing in England and Northern Ireland are not liable for Stamp Duty Land Tax (SDLT) when purchasing property with a public subsidy and public bodies will be exempted from the 15% anti-avoidance rate of SDLT.  

Wider change for social housing – Right to Buy

  • 5.71 Allowing local authorities (LAs) additional flexibility in their use of Right to Buy receipts – The government will increase the cap from 40% to 50% on the percentage of the cost of a replacement home that can be funded from Right to Buy receipts. 

Further information can be found here.

In addition, the Chancellor made the following key announcements which the Charity Tax Group consider could also be relevant to charities in general: 

  • The VAT registration threshold for small businesses will increase to ÂŁ90,000 from 1 April 2024, which will hopefully prevent many smaller charities from being drawn into the VAT net. 
  • The Government will cut the main rate of National Insurance Contributions for employees from 10% to 8%. The main rate of national insurance for the self-employed will reduce from 8% to 6% on Class 4 National Insurance Contributions.  Employers contribution levels are unaffected. 
  • Amendments have been tabled to the Digital Markets, Competition and Consumers Bill to allow charities to continue to claim Gift Aid on subscription contracts, which could otherwise have been affected by the provisions in the Bill.  

14 March 2024