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.
The content of this article is for general information only and does not constitute tax advice. It should not be relied upon and action which could affect your business should not be taken without appropriate professional advice.
Margaret Scarrott FCCA BIAC
Partner
Margaret has been in practice in the South West for over 20 years after qualifying as a Certified Chartered Accountant in London. Margaret is frequently called upon to help with partnership capital tax planning and family business reorganisations.
Margaret is a member of the British Institute of Agricultural Consultants and has been a member of the CLA National Taxation Committee, the Somerset CLA Committee, Cannington College Corporation and the Bath & West Conference Committee in the past. Margaret farms with her husband on the Somerset and Devon border. She is a keen supporter of Young Farmers and is a club leader and is on the advisory of Honiton YFC. Entertaining family and friends takes up much of Margaret’s spare time.