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Budget 2014: Expert comment for the Real Estate and Construction industry

Kersten Muller, Tax Partner in Real Estate and Construction at Grant Thornton UK LLP, commented:

The Budget had some welcome announcements for the Real Estate & Construction industry. The Help to Buy scheme has been extended and, crucially, there will be support to build new homes, addressing some of the housing shortage.

 The Annual Investment Allowances for businesses incurring capital expenditure will be increased to £500,000 from April this year, providing welcome tax relief to those investing.

 No additional news on the proposed Capital Gains Tax for non-resident investors in UK residential property other than confirmation that it will be introduced in April 2015. We have to wait until the consultation arrives in due course. However, SDLT for companies buying residential property worth more than £0.5m has been increased to 15%. There are reliefs available to reduce the SDLT, for instance for residential property held for investment or development purposes. In addition, the scope of Annual Tax on Enveloped Dwellings (ATED), introduced last year, has been increased to cover properties worth more than £0.5m owned by wrappers. Again, reliefs from ATED are available for a number of businesses although this will lead to an increase in compliance for those businesses.industry/#sthash.ucIhBSbC.dpuf