What the Budget means for landlords in Brixton and Battersea
17th March 2016
17th March 2016
Landlords in Brixton and Battersea have been dealt a blow by Chancellor George Osborne’s latest Budget.
And a new savings scheme for homebuyers will do little to make buying a home in these popular parts of London any easier.
Residential landlords who are looking to cash in on rising property values in in Brixton and Battersea have been excluded from a capital gains tax cut announced by the Chancellor.
George Osborne used his Budget speech to reveal the higher rate of CGT is being reduced from 28% to 20%, while the basic rate will fall from 18% to 10% but will remain at the old rates for investors who sell residential property.
The Treasury has also announced it will extend its stamp duty surcharge on purchases of additional property to include those who buy more than 15 properties.
From 1 April, an extra 3% levy will now be applied to standard stamp duty rates on all purchases of property that is not intended to be the buyer's main home - even institutional investors backing big developments.
Homebuyers, on the other hand, have received some extra help from George Osborne.
The Chancellor used his latest Budget speech to turn the existing Help to Buy ISA into a new Lifetime ISA for savers aged under 40. This will continue to pay a 25% bonus to account holders saving towards their first home, but will also pay the government top-up if the saver holds on to the ISA until retirement.
However, the savings and bonus can only be used towards a deposit on a first home worth up to £450,000.
The Chancellor has announced new stamp duty rates for commercial property.
Previously, stamp duty rates for commercial property applied to the whole transaction value, with fees of 3% being charged for business premises sold for between £250,001 and £500,000, and 4% above that figure.
But from now on the rates will apply to the value of the property over each tax band.
The new rates and tax bands will be 0% for the portion of the transaction value up to £150,000, 2% between £150,001 and £250,000 and 5% above £250,000.
Stamp duty rates for leasehold rent transactions will also change, with a new 2% rate on leases with a net present value over £5m.
The 2016 Budget also contained a number of other announcements affecting the property market in Battersea and Brixton.
For more information on the 2016 Budget, click on the link below: