Stamp duty hike confirmed by Chancellor

Stamp duty hike confirmed by Chancellor

George Osborne has used part of his budget announcement to confirm what many landlords feared, namely that the 3% Stamp Duty surcharge on additional properties is to go ahead next month.

The chancellor outlined that receipts would go toward helping people get on the housing ladder in the south west of England.

He also also announced reforms to Stamp Duty Land Tax on commercial property, which will kick in at midnight tonight, saying: “Just over a year ago, I reformed residential stamp duty. We moved from a distorted ‘slab’ system to a much simpler ‘slice’ system. As a result, 98 per cent of homebuyers are paying the same or less and revenues from the expensive properties have risen. The IMF have welcomed the changes and suggest we do the same for commercial properties. That is what we are going to do, and in a way that helps our small firms.

At the moment our small firms can pay just £1 more for a property and face a tax bill three times as large – that makes no sense.”

From midnight, stamp duty on commercial property will have a zero rate band on purchases up to £150,000; 2% rate on the next £100,000 and a 5% top rate above £250,000.


Mark Tighe, managing director, capital allowances tax specialists, Catax Solutions, said: "The reduced stamp duty payable on commercial property announced by the Chancellor will doubtless drive demand in this key asset class in the months and years ahead.
 
But the resultant increase in transactions, among both businesses and private individuals buying commercial property, will potentially cost billions as a largely unused tax relief is lost forever. Capital allowances are a highly valuable tax relief available to owners of commercial property but under current legislation they are irrecoverable if they are not identified and realised at the point of sale.
 
Currently, very few commercial property owners, along with their accountants and lawyers, are aware of unused capital allowances tax reliefs. Therefore as transaction levels increase in volume and momentum, commercial property owners are set to lose significant tax rebates to the tune of thousands, tens of thousands or even hundreds of thousands of pounds."

Join our mailing list:

Leave a comment



Latest Comments

Spencer Fortag
Spencer Fortag 25 Aug 2016

The funny thing is, I mentioned the brick issue in my blog back in April: http://medwayproperty.blogspot.co.uk/2016/04/the-medway-property-market-and-lack-of.html

view article
SecomTech
SecomTech 19 Aug 2016

Firstly, I either lodge with DPS or do not take a deposit...secondly, If a tenant has not received a confirmation their deposit is secured with either a scheme or in an insured account with an agent/landlord,...

view article
jasonevans
jasonevans 19 Aug 2016

Belvoir has over 15 years of experience in property lettings, buying and renting and is one of the best agencies I know about. I have heard that they revived an award for the hard work. Really amazing...

view article
jasonevans
jasonevans 19 Aug 2016

Usually these areas are least affected when it comes to unexpected economical collapse.

view article
TheWaspNestRemover
TheWaspNestRemover 11 Aug 2016

You agree to pay for the treatment needed to get rid of fleas, ants, mice, wasps nests and other pests unless you can prove that these are a result of us not meeting our repairing responsibilities or these...

view article
madisonwelch80
madisonwelch80 02 Aug 2016

16% is quite a raise. Let's hope this tendency won't continue for long.

view article
madisonwelch80
madisonwelch80 02 Aug 2016

?66,963 is a serious price drop However buying a property it a serious investment only small percentage of the UK population could afford.

view article
madisonwelch80
madisonwelch80 02 Aug 2016

Wow, it kind of surprised me. I mean counting on mom and dad's bank even after retirement is too much. That's the moment in life when one should have ensured themselves. I am shocked.

view article
AbbieP.
AbbieP. 22 Jul 2016

"While house prices in the most expensive eleven boroughs have declined values in the cheapest eleven boroughs continue to rise" - not a nice way to even out the price range. London is overrated as it

view article
AbbieP.
AbbieP. 21 Jul 2016

And try to profit from your decisions, I may add

view article
CommercialTrust
CommercialTrust 19 Jul 2016

Retirement investment has always been one of the biggest draws of buy to let. And the buy-to-let demographic is, on balance, older. (Over a third of our applicants are over 50 at the time of application.) It...

view article
Forrest Wheatey
Forrest Wheatey 11 Jul 2016

I find the time perfect for ever home-owner wannabe. Prices should slowly, but steadily drop, at least for the inner buyer. Making it harder for outsiders to buy properties (the whole Brexit thing means...

view article

Related stories

More articles from Hero

Specialist Lending Roadshow 2016

20th-23rd September

4 days
6 specialists
4 locations
Free to attend

Click here to register now