Today the new Government leadership has announced their 'Mini-budget', which is designed to have some big changes.

Among headline news like the £60bn energy price support that aims to keep the average yearly bills for households capped at £2,500, the budget is very focused on the property industry and ensuring growth on all fronts there.

In this article, we'll take a look at what these changes mean for you, and why this is a very positive budget for landlords, property investors, and property buyers in general.

 

Immediate cut to stamp duty land tax

Currently, you only save stamp duty tax on up to £125,000 of the purchase price of the property you are buying. This figure will now be increased to the first £250,000 of the property you are buying which is great news for landlords as many high-yielding investments fall under this price bracket in many areas, particularly in the North.

First-time buyers, who don't pay any stamp duty on up to £300,000 of the property's purchase price, will now save stamp duty on the first £425,000 of the property's value, giving a boost to first-time buyers all over the country and particularly designed to help aid growth in the London market. First-time buyers will also be able to claim the stamp duty relief on properties valued up to £625,000, up from £500,000, which again points to stronger aid for the London market and helping get more people on the property ladder.

 

New developments set to thrive in this 'new era'

Did you know it is estimated that we need an additional 250,000 new homes per year to keep up with the demand for properties?

To help with meeting targets for new build properties, the Government will be increasing its sales of surplus land that it owns so new homes can be built upon it.

Investment zones will now be set up across the country, including the West Midlands, the Tees Valley, and Somerset, where investors purchasing land to build residential properties will pay no stamp duty tax on the purchase. The business responsible for the development and purchasing the site will also pay no national insurance for new employees on the site.

 

Corp tax increase canceled

Corporation tax in the UK was set to increase to 25% next year, however, it will now remain at 19% to make the UK one of the most 'competitive & progressive' tax countries in the world.

This will come as welcome to news to many owners of limited companies, especially those landlords who have recently set up or are looking to set up a limited company for their property investments due to the more efficient tax structures behind them, and of course the tax benefits that come with purchasing a property through a limited company.

 

We hope you found this article informative, and we'll have more updates as they come through to help you stay up to date with how this new budget will affect your assets.

If you want to get further info on exactly what this could mean for your property portfolio, simply request a callback with our team below