Key budget changes so far to affect the property market

publication date: Mar 16, 2016
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

Key budget changes so far to affect the property market

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

  • 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:-

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