Budget 2021 – Implications for Property
Yesterday saw a reasonably benign budget from a property perspective and of course many of the measures are focused on continuing to support the country through the current difficulties.
Head of Real Estate, Marcus Francis, briefly summarises the announcements that have implications for property:
- SDLT – the temporary increase in the nil rate band to £500,000 is extended from 31 March 21 to 30 June 21 and is then tapered to £250,000 on 1 July 21 before reverting to £125,000 on 1 October 21.
- Mortgage guarantee scheme – from April 21 a Government-backed mortgage guarantee scheme will help first time buyers access 95% mortgages on homes up to £600,000.
- Business rates – 100% relief will apply to retail, hospitality and leisure properties until 30 June 21 after which rates will be discounted by two-thirds until 21 March 22.
- Re-opening support grants – up to £6,000 per premises for non-essential retail and up to £18,000 per premises for hospitality and other sectors that are opening later.
- Capital allowances – “super deduction” of 130% tax relief on plant and machinery allowances and 50% on integral features for new expenditure incurred between 1 April 21 and 31 March 23.
- Boosting investment – eight new freeports (benefiting from tax relief, simpler planning and infrastructure funding), £1bn funding for 45 new town deals across the UK, a UK Infrastructure Bank, £150m to help communities take ownership of pubs and theatres that are at risk of closing and plans to relocate civil servants to a new economic campus in Darlington.
Our team of expert property lawyers are on hand if you would like to discuss any of the above.
If you have an interest in private tax implications then look no further than the article below which has been prepared by our excellent private client team.