Budget 2021 | Property Tax measures announced
Our Property Tax team delve deeper, exploring the key announcements of the 2021 Budget.
Property Tax announcements from the 2021 Budget
Support for the residential property market
- Up to the end of June 2021 there will be no SDLT on the first £500,000 for purchases of homes in England and Northern Ireland, where this is the purchaser’s sole residence. The 3% surcharge will remain in place if this will not be the purchaser’s only residential property or if the purchaser is a company.
- From 1 July to the end of September 2021 the holiday amount reduces to £250,000.
- Importantly both the new dates of the end of June and September are ‘cliff edges’ so a purchase must be completed to take advantage of the SDLT holiday.
- The above does not apply to Scotland where the LBTT or to Wales where the LTT will return to the usual rates from 31 March 2021.
- This is not only a great boost for those people seeking to get onto the property ladder, especially in conjunction with the news that 95% LTV mortgages will soon be available again, but also good news for those looking to move.
Increase in funding for apprenticeships
- This will help with the current shortage of skilled labour particularly for SME construction companies.
Establishment of the Modern Methods of Construction (MMC) Taskforce
- Backed by £10m of seed funding, this will accelerate the delivery of MMC homes in the UK which is also good news for the housing market.
Increase in Capital Allowances to 130%
- This is great news for Commercial Property Investors and the Construction sector, allowing them to invest in new equipment for growth at a reduced cost of £75.30 for every £100 of expenditure. The good news is obviously diluted to some extent by the future increase in corporation tax rates.
Want to know more?
Across all areas of Tax, our experts have been commenting on their "first thoughts" of the 2021 Budget announcements. To read more, please use the following links:
Have you been affected by the Budget?
If you have any queries regarding the Budget 2021 announcements and the impact they may have on you or your organisation, please get in touch with your usual Azets contact or a member of our Property team.
Watch our webinar
On 4 March 2021, our expert advisors explored the technical issues arising from the 2021 Budget and provided a practical assessment of the key announcements and their impact for both businesses and individuals. As ever with the Budget, the devil was in the detail. Our presenters also highlighted issues the Chancellor may not have made obvious in his address to Parliament.
To watch our webinar recording and download a copy of our slides, click here.