Property Tax Update: Stamp Duty & Business Rates

One of the biggest headlines from the budget was the immediate abolition of stamp duty for residential properties up to £300,000 bought by first-time buyers. Those spending up to £500,000 will also benefit, as the first £300,000 will not be subject to tax.

The Office for Budget Responsibility have already warned that this measure may increase house prices by 0.3%, with the majority of that growth in 2018, and may jeopardise those the relief is intended to aid.

In light of the recent rise in inflation, over the next 5 years the government will provide a further £2.3 billion of support to businesses in the form of business rates, by bringing forward the planned switch in indexation from RPI to CPI to 1 April 2018, continuing the £1,000 business rate discount for public houses with a rateable value of up to £100,000 for another year from 1 April 2018, and increasing the frequency with which the VOA revalues non-domestic properties by moving to revaluations every three years from 2022.

Written by Margaret Scarrott FCCA BIAC

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