The property industry has welcomed Chancellor Gordon Brown’s Budget commitment to abolish stamp duty on commercial property in deprived areas.
Andrew Gulliford, deputy senior partner of Cushman & Wakefield Healey & Baker, said: “It is clear that the government is serious about regeneration through the abolition of stamp duty in 2,000 of the most deprived locations.”
In November’s Pre-Budget report, Brown abolished stamp duty on all exchanges worth less than £150,000 in 2,000 deprived wards.
Yesterday Brown extended the plans, saying: “For commercial transactions, I will seek state aid approval to abolish this limit altogether.”
But the change cannot go into effect until the decision is approved by the EU, which considers it a form of state aid, and therefore subject to EU control. The Treasury is in talks with EU mandarins to secure approval.
Nigel Cooper, head of planning and development at Colliers CRE, said that it would make an important difference to regeneration schemes.
Cooper commented: “This incentive will enable us to raise interest and regenerate areas that had previously been overlooked by both investors and occupiers alike. On properties of £500,000, this would mean a direct saving of £20,000.
“For occupiers, this incentive will also enable them to possibly purchase their own premises rather than rent.
“It will reduce their immediate purchase costs and give them a tangible asset which they can use as security for the development of their business in the future.”
EGi News 18/04/02
