In his latest Budget speech, George Osborne announced a number of details those in the property market should take note of.
Stamp duty surcharge confirmed
His speech confirmed the 3% stamp duty surcharge on buy-to-let and second homes will go ahead from April 1st, as already anticipated.
Larger, corporate investors
The Chancellor also announced that larger investors would not be exempt from the charges – contrary to a suggestion made in the Autumn Statement that certain people would be exempt.
Where will the money raised from the stamp duty surcharge go?
According to George Osborne, the extra money will go towards funding local housing schemes, such as helping young families get on the property ladder, and helping the homeless.
Capital Gains Tax
Capital Gains Tax, the tax on the gain you make when you sell something, will be cut from 28% to 20% for higher rate taxpayers and from 18% to 10% for basic rate taxpayers. It was announced in the Budget that landlords are exempt from capital gains cuts.
Tax break for ‘micro entrepreneurs’
This will benefit people who let properties online through sites like AirBnb who specialise in short term lets.
They are said to be handed a £1,000 a year tax break, however full details of exactly what this means are yet to emerge.
This new initiative for adults under 40, launched in April 2017, means savers will get a 25% bonus from the government. They can pay up to £4,000 a year, with the annual bonus of up to £1,000 paid until the age of 50.
This Lifetime ISA can also be used to buy a home or a pension.
Crossrail 2 confirmed
Crossrail 2 has been given the green light. The £27 billion upgrade will link the north with the south, through London, connecting Hertfordshire and Surrey via stations such as Victoria and King’s Cross.
Want to find out more about the stamp duty surcharge? Read up on the facts here. To find out how this could affect you, speak to our property experts today on 020 7078 0214 or via email firstname.lastname@example.org.