Money Changes coming in June for U.K…for info

[Dalartokat]

Abolition of Multiple Dwellings Relief tax break - June 1

In the Spring Budget, Chancellor Jeremy Hunt confirmed that the government will abolish the multiple dwellings relief for stamp duty land tax. Those who buy more than one dwelling in a single transaction - such as houses and flats bought together, mixed-use properties like shops with a flat above, or houses with an annexe - will no longer benefit from the tax relief from June 1, leading to higher costs on larger purchases.

Initially, the relief was intended to attract investment in the private rental sector, but a HMRC evaluation of the process found it made no significant difference and was instead leading to abuse of the system. The move has been criticised by private investors who say the change in stamp duty will lead to the value of properties dropping. The chancellor said abolishing Multiple Dwellings Relief will raise around £385 million a year for the Treasury.

New King Charles banknotes enter circulation - June 5

From June 5, King Charles' likeness will grace British banknotes for the first time. His portrait is set to adorn the front of the notes and will also be featured in a cameo within the transparent security window, which can be seen from both sides.

The reverse side of the notes will retain their current designs, featuring prominent British figures such as Sir Winston Churchill on the £5 note, Jane Austen on the £10, JMW Turner on the £20, and Alan Turing on the £50. Existing banknotes with the image of the late Queen Elizabeth II will remain legal tender, with the old and new versions circulating together.

Cat owners face £500 fine - June 10

A forthcoming law requires all cats to be microchipped by that date, or owners could face a hefty penalty. Charity Cats Matter has highlighted that an estimated 25% of UK cats may currently be without microchips.

A spokesperson for the charity stated: "Once the new law comes into force, owners found without their cat microchipped will have just 21 days to have one implanted. After the 21 days, owners may then face a fine of up to £500. We have done the hard part by getting the law changed. Now it is down to cat owners to make sure this is the success we know it can and will be."

Bank of England interest rate decision - June 20

The Monetary Policy Committee (MPC) is scheduled to review the national interest rate on June 20. Previously, the Bank had voted to maintain interest rates at 5.25 per cent - a 16-year high.

The Bank has consistently expressed its intention to reduce inflation to 2 per cent, which is likely one of the key factors being considered before members vote on the new interest rate. Encouragingly, inflation dropped to 2.1 per cent in April, down from 3.2 per cent in March, marking the lowest level since July 2021 when inflation was recorded at 2 per cent.

Interest rates play a crucial role in determining the amount repaid on loans such as mortgages. Lower interest rates mean lower mortgage payments.

Despite a slight decrease in mortgage rates since December, approximately 45 per cent of fixed-rate mortgage holders are expected to face higher monthly repayments when they reprice their mortgage by the end of 2026.

Changes to Debt Relief Orders (DROs) - June 28

The £90 fees were already removed in April of this year, and increases in the debt threshold and vehicle value will be implemented next month. The total amount of debt covered by a DRO will rise from £30,000 to £50,000, while the value of a vehicle that a person can own when entering a DRO will increase from £2,000 to £4,000.

Andrew Shore, assistant director of policy at the Insolvency Service, noted: "Some people need a car for work, mobility or family reasons, but the value of vehicles has risen a lot in recent years. Raising the value of the car you can own will enable more people to access a DRO when they need one.

"And those who owe up to £50,000 but don't have the money to make repayments to creditors will be able to see a way out of overwhelming debt. The changes reflect challenges that people are facing now and will make sure DROs are available to people who really need that help."