The chancellor said the higher rate of the tax, which applies to capital gains on most assets, will fall to 20 per cent, from 28 per cent now, while the basic rate falling to 10 per cent, from 18 per cent before.
But the move won't help landlords, after Osborne said capital gains on residential property and carried interest will be subjected to an eight percentage point surcharge - essentially leaving them at the original rate.
Capital Gains Tax applies to all residential properties except the main home.
It's the second time landlords have been punished, after Osborne introduced a hike to stamp duty for landlords in last year's Autumn Statement.
"Yet again landlords and second home owners will lose out," said Eleanor Metcalf, partner and head of private client group at Wedlake Bell.
“Keeping the old rates of CGT on residential property will make it more difficult for existing buy to let investors (who face a cut in income tax relief on interest payments) to reorganise their portfolios towards better performing property," added Lucian Cook, head of residential research at Savills.
"It will also act as a longer term disincentive to invest in residential property compared to other asset classes which may put further pressure on the supply of private rented homes against the backdrop of rising demand. That may well put upward pressure on rents."