Autumn Budget – Property taxes

24th November 2017
  1. SDLT for First time buyers – The government has introduced a new relief from SDLT for first-time buyers (in England, Wales and Northern Ireland) for all transactions with an effective date on or after 22 November 2017.

The relief works as follows:

  • £300,000 or less: no SDLT payable
  • £300,001 and £500,000: no SDLT on the first £300,000 and SDLT at 5% on the balance
  • Over £500,000: no relief.

A first-time buyer has been defined by the government as ‘an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence’.

  1. Mileage rates for landlords – The government will extend the option to use approved mileage rates to property businesses on a voluntary basis, to reduce the administrative burden.
  2. Capital Gains Tax (CGT) payment window – The introduction of the 30-day payment window between a gain arising on a residential property and payment due date will be deferred until April 2020.
  3. Gains on non-resident disposals of all UK immovable property (including land and UK commercial property) will be brought within the scope of UK tax. The change is expected to apply to gains accruing on or after April 2019 and is an extension of the non-resident capital gains tax (NRCGT) legislation introduced in 2015 (CGT for UK residential property disposed of by non-residents).
  4. Corporate indexation allowance -will be frozen from 1 January 2018. No relief will be available for inflation accruing after this date when calculating chargeable gains made by companies.


 
Other items in Blogs
 
Vanessa Pearson
13th December 2019 April 2020 Proposed IR35 changes: Status appeals process

As the planned changes to who determines IR35 status are fast approaching, contractors would be well advised to review their contracts on HMRC’s updated CEST (Check Employment Status for Tax) tool. Having provided answers to questions regarding substitution, control and nature of the work, the updated tool will give HMRC’s view of the workers employment…

Read More »

Ben Kilby
12th December 2019 VAT Surcharge

Have you or your business received one between 23 April 2018 and 31 January 2019?   If so, you may want to check if it has been dated. If it has not been dated you may be in for a refund. Any surcharge liability notice or surcharge liability notice extensions are invalid if they have…

Read More »

Lucy Bayliss
25th November 2019 Don’t let your tax bill affect your festive joy. Instead, spread your tax payments throughout the year!

With the festive period fast approaching, it is easy to lose sight of your self-assessment tax return!   If you are employed or receiving a pension and you file your return before 30 December 2019, you can elect to have your tax collected through ‘Pay As You Earn’ (PAYE) rather than paying one lump sum…

Read More »

Ian Piper
22nd November 2019 2019 Growth: Missing in action?

(Data Source) As another year draws to a close, local SME businesses will be forgiven for looking forward to drawing a line under it. With 2019 sales growth barely nudging 1%, it has been a year of focusing on not slipping backwards, rather than the usual mantra of continually signing up new accounts.  When commentators…

Read More »

Mark Burrows
21st November 2019 Avoiding Self Assessment Tax Scams

HM Revenue & Customs have reminded Self Assessment taxpayers to watch out for fraudsters as the tax return filing deadline of 31 January approaches.   HMRC say they have received nearly 900,000 reports of suspicious phone calls, texts or e-mails from scammers pretending to be the tax authority.  Most of these messages were about fake…

Read More »

Scott Bishop
20th November 2019 Postponement of planned Corporation Tax reduction

Boris Johnson has announced plans to postpone the cut in Corporation Tax to 17% (down from 19%) that was due to take effect from 1st April 2020 in order to save £6bn, stating that the money would be better spent on other ‘national priorities’,  including the NHS.   It is not clear when, or indeed…

Read More »