Press Room
Pre budget report measures on property are uneventful, Grant
Thornton UK LLP says
Commenting on today's announcements
in the Pre-Budget Report related to the property sector, Clare
Hartnell, Head of Property and Construction said:
"Today's property related
announcement in the Pre-Budget Report has been quite uneventful and
crucially, it lacks the much needed measures to help first time
buyers, hindering them further by removal of the Stamp Duty Land
Tax (SDLT) holiday.* Although it was due to be phased out, it was
hoped that the Chancellor would take the opportunity to extend the
relief for longer. That said, the HomeBuy Direct initiative is
helping first-time buyers with equity loans of up to 30% for new
build properties.
"It is positive to see an unchanged
Capital Gains Tax rate of 18% which will benefit individuals
investing in property. However it is disappointing that SDLT relief
in disadvantaged areas has not been reintroduced. It is also
unfortunate that an extension to first year capital allowances was
not made.
"The Government has announced
various anti-avoidance measures, including those which exclude
vendors from selling the value of unused capital allowances to
others. There is also an announcement on SDLT disclosures, albeit
this is not significantly changed from the existing disclosure
requirements in place.
"Finally, the Chancellor has announced a further year extension
to the temporary increase at which an empty property becomes liable
for business rates. That is good news for properties with low
values, it's just a shame he didn't abolish these rates
completely."
For further information, please contact:
Stephanie Aneto, Grant Thornton press office, tel: 020 7728 2940
or email: stephanie.aneto@gtuk.com