Key budget changes so far to affect the property market

publication date: Mar 16, 2016
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author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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Key budget changes so far to affect the property market

Here we go, main changes we’ve found so far…more to come Thursday:-

Economic:-
  • Growth forecast cut to 2% for 2016 from the 2.4% forecasted last year
  • Inflation to remain low at 0.7% for 2016

Personal taxation:-
Capital Gains Tax reduced:-

  • From 28% to 20% for higher rate tax payers
  • From 18% to 10% for basic-rate taxpayers

However, this won’t change anything on property sales as:-
There will be an additional 8 percentage point surcharge to be paid on residential property and carried interest (the share of profits or gains that is paid to asset managers).

  • 40% tax payer threshold rises from £42,385 to £45,000 in April 2017
  • Tax-free personal allowance to rise to £11,500 in April 2017
  • Rise of 0.5% in insurance premium tax

Housing relevant changes:-
New "lifetime" Isa for the under-40s:-

Government will top up by £1 every £4 saved, up to £4,000 per year (to replace the Help to Buy ISA)

The Money Advice Service to be scrapped.

New commercial stamp duty rates apply from 12am Wednesday 16th March 2016:-

  • 0% rate on purchases up to £150,000, 
  • 2% on next £100,000 
  • 5% top rate above £250,000.

Corporation tax to fall from 20% to 17% by 2020

Specific area investment:-

Here’s the detail:-
https://www.gov.uk/government/news/budget-2016-some-of-the-things-weve-announced


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