UK Budget Summary
Below is a brief summary of the items which could impact homeowners and the London property market. You are recommended to obtain your own independent professional advice.
Stamp Duty for First-time Buyers
- Stamp duty has been abolished for first-time buyers purchasing property under ￡300,000
- First-time buyers buying property for under ￡500,000 will only pay 5% on the sum over ￡300,000– a saving of up to ￡5,000
- Purchases above ￡500,000 will pay the normal rate of stamp duty
- Changes come into effect immediately
Increased Tax on Empty Homes
- Designed to encourage owners of empty homes to bring their properties back into use
- Local authorities are able to increase the council tax premium on empty homes from 50% to 100%.
Longer Tenancies
The government will consult on the barriers to landlords offering longer, more secure tenancies to those tenants who want them.
Help to Buy
￡10 billion has been confirmed for the Help to Buy scheme
Land Banking
An enquiry will be launched into why properties with planning permission have not been built including measures to force the construction to begin.
Capital Gains Tax Payment Window
In 2015 the Government announced that it was significantly reducing the time in which Capital Gains Tax for a gain from residential property needed to be paid to 30 days. However, this has now been deferred until April 2020.
Taxing Non-Residents
To align the UK with other countries and remove an advantage which non-residents have over UK residents, all gains made by non-residents from sales of UK property will be brought within the scope of UK tax. This will apply to gains accrued on or after April 2019.