Following the Chancellor of the Exchequer, Rishi Sunak’s Spring Budget today announcing his fiscal plans for the year ahead, there are some changes that will impact the property industry.
Here’s our summary of the key points that landlords and property investors across the UK must be aware of …
Stamp Duty Extension
After lots of speculation in the past few weeks, Rishi Sunak has confirmed that the stamp duty holiday, applicable on homes worth up to £500,000 due to finish 31 March 2021, will indeed be extended until the 30th June 2021. This is to allow additional time for existing or new deals to complete to avoid fall throughs.
The Stamp Duty holiday has proved extremely popular since inception and has provided the opportunity for buyers to save up to £15,000.
The Chancellor said to ‘smooth the transition back to normal’, the nil rate band will be £250,000 – double its standard level – until the end of September.
The usual level of £125,000 will return on October 1.
Business Rates
The 100% business rates holiday, which was launched last year that was due to finish at the end of this month has been extended for retail, hospitality and leisure until the end of June.
For the remaining 9 months of the year they will be discounted up to two thirds.
This is a welcome extension that will be a lifeline for many, and fits in with the tentative roadmap of retail being allowed to resume in April and May.
Mortgage Guarantee Scheme
Taxes
Inheritance tax, Capital Gains Tax and Pensions lifetime allowance, like income tax thresholds, will all be frozen until April 2026.
The basic allowance will continue to go up to £12,570, as planned. But then it will stay at that level until 2026.
The higher rate threshold will also go up to £50,270. But then it will be frozen for the same period.
If you have any questions with regards to the upcoming changes, we would be delighted to assist. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.
