The Spring Budget 2025 introduced some long-term incentives designed to encourage investment and support businesses with physical assets—including those in the property market. Two key updates are the permanent introduction of full expensing for capital investments and extending business rates relief for certain sectors.
At Christopher Anthony Property Experts, we’re exploring how these tax changes could benefit landlords, property investors, and even commercial property owners in Hampshire and Surrey.
What Is Full Expensing?
Full expensing allows businesses to deduct 100% of the cost of qualifying plant and machinery investments from their profits in the year the expense is incurred. Previously, it was a temporary measure, but it has now been made permanent.
For the property world, this is particularly useful for:
- Estate agencies upgrading office equipment or IT systems
- Landlords investing in fixtures for furnished rentals
- Property managers investing in tools, tech, or security systems
While residential property purchases aren’t eligible, equipment and upgrades within commercial or rental properties may qualify.
How Can Property Businesses Benefit?
Here are some practical examples of how property professionals might take advantage of Business Rates Relief:
Landlords (especially furnished or serviced lets):
- Air conditioning units, fire alarms, or fitted kitchen equipment could be eligible.
- Investment in smart home tech or security systems may also qualify.
Estate Agencies or Letting Businesses:
- Office furniture, IT upgrades, and business vehicles.
- Energy-efficient lighting, security systems, or communication tools.
By deducting the full cost immediately, you reduce your taxable profit—potentially saving thousands in Corporation or Income Tax, depending on your structure.
What About Business Rates Relief?
The Spring Budget also extended the 75% business rates discount for retail, hospitality, and leisure businesses through to March 2026. While this doesn’t directly benefit standard residential landlords, it does apply to commercial property owners and mixed-use spaces, such as:
- Shops or cafes with flats above
- Offices rented out to service providers
- Commercial-to-residential conversions with transitional use
If you’re a landlord or developer with commercial assets, it’s worth checking whether your property qualifies for this extended discount.
Why Business Rates Relief Matters for Hampshire and Surrey
With towns like Reading, Basingstoke, Wokingham, and Guildford seeing rapid growth and investment, these updates could support:
- Smaller developers looking to upgrade rental units
- Commercial property investors investing in office space or conversions
- Local agencies looking to reinvest in infrastructure or tech
These tax incentives are designed to encourage reinvestment and boost economic activity. For property professionals, they offer a great chance to improve their portfolios, upgrade their business tools, or add long-term value to their properties—with a tax break to accompany it.
At Christopher Anthony Property Experts, we’re here to support landlords, buyers, and sellers across Hampshire and Surrey with up-to-date property advice and local insight. If you’d like to explore how these changes could impact your property investments or business plans, let’s have a conversation.
