Yesterday was Budget Day. A day that politicians and journalists live for but the rest of us could quite happily miss. In fact rather than hours of coverage most sane individuals would rather a brief synopsis of the major points. So here are the key points with regards to property:
The government really doesn’t like people using companies to buy properties:
- Now any property worth more than £500,000 will be subject to SDLT of 15% if purchased by a “non-natural” person.
- A new band for AETD (Annual Tax on Enveloped Dwellings) will come into effect for homes worth more than £500,000 but less than £1m which will be £3500. This starts from April 2016 and Capital Gains tax will also be payable on gains from this date.
- Another new band for ATED for properties between £1m-£2m will come into effect from April 2015 and will be £7,000. GCT will be liable on gains from this date.
Are you still awake? Yes, I know it is not very exciting but ultimately this is important information. If you own a property through a company you should speak to your advisers immediately to discuss your options. If you are planning to buy a property it is unlikely that using a company will be the most efficient way.
Please note that these rules do not apply to nominee trusts so if you want to maintain your anonymity then this is still a feasible way of doing so. Again speak to your tax and legal advisers, but please contact me if you would like me to recommend good firms.
The good news is that there was no mention of Mansion Tax which has become a rather repetitive political and journalistic football of late (and yes I am aware of the irony of me mentioning it here!). Obviously, this doesn’t mean that it won’t rear its head again soon and I will keep you updated on any concrete proposals as opposed to mere conjecture.
Of course, if you have any questions on this topic or have any queries or concerns about acquiring a property in prime central London then drop me a line here.