Estates Gazette’s 2016 Budget round-up

Tweet your views on the Budget @estatesgazette #budget2016 Follow @EstatesGazette News Stamp duty Business rates Devolution Capital gains Housing, regeneration and development Industry reacts From the archives NEWS AND COMMENT Click the headline for full story [caption id="attachment_844428" align="alignright" width="150"] Click to enlarge[/caption] • Melanie Leech: Osborne has surprised us, for better and for worse The chancellor surprised the property industry in both welcome and unwelcome ways with this year’s Budget • Budget 2016: property round-up From midnight on Wednesday 16 March, commercial property investors will see stamp duty land tax brought in line with that of residential. That was one of many property measures announced by chancellor George Osborne in the Budget 2016 Major announcements across the UK mapped out  From infrastructure to new Enterprise Zones to rates here's all the major investments announced across the UK mapped out. Click on the map to see a larger version. The Treasury's guide to the Budget 2016. Click here for government's document Back to top STAMP DUTY • Government to apply SDLT rates equally The government has announced it would apply higher Stamp Duty Land Tax rates equally to all purchasers without an exemption for significant investors in the results of a public consultation • SDLT changes disappointing, says BNP PRE BNP Paribas Real Estate has said that the SDLT changes announced in today’s Budget are “disappointing” • Stamp duty on commercial property cut From midnight tonight stamp duty on commercial properties valued at up to £150,000 will be cut to 0%, bringing it in line with residential SDLT, the chancellor of the exchequer announced today • Industry heavyweights react to stamp duty changes The British Property Federation has warned against an “unravelling of logic”, following the chancellor’s announcement to cut stamp duty on commercial properties Government documents: Click below for Treasury documents Business tax road map SDTL: Reform of charging provisions for non-residential properties Consultation on higher rates of SDTL. Click here for Treasury document Stamp Duty and Stamp Duty reserve tax: deep in the money option Higher rates on purchases of additional residential properties Back to top BUSINESS RATES • The Budget and business rates The chancellor’s announcements fall short of the hoped-for business rates revolution, but Mark Higgin and Blake Penfold find some reasons for optimism • Business rates relief: property reacts The property industry has reacted positively, if cautiously, to the government’s cut in business rates for small firms • Rates reforms could be bad news The business rates reforms revealed in today’s budget could have a detrimental impact on those who use property to sell goods and services, British Council for Shopping Centres (BCSC) has said • LSH welcomes rates changes Exempting business rates for many small businesses is a welcome change, says LSH’s head of business rates • Government needs to be clear on business rates, says Savills There need to be more clarity as to whether business rates will be“fiscally neutral”, Savills has warned • Business rate thresholds rise The threshold for business rates will rise for smaller businesses to £15,000. For larger businesses, the threshold will rise to £51,000 • Business rates cut announced Business rate reforms will see around 600,000 companies pay no business rates by 2020, with more than half of all businesses paying lower rates, chancellor George Osborne has announced • RPI to CPI switch is “token gesture” The decision to switch the annual increase in business rates bills from RPI to CPI is a “token gesture”, according to Jim Ruthven, head of business rates at BNP Paribas Real Estate Government documents: Click below for Treasury documents Business Tax road map Back to top  • Was commercial property an easy target in the budget? Guy Grainger, chief executive JLL UK, gives his snap reaction to George Osborne's changes Back to top DEVOLUTION • Shires say: ‘We are devo’ New devolution deals for the West of England, East Anglia and Greater Lincolnshire made it into this year’s Budget • Edinburgh awarded City Deal Edinburgh has been awarded a £1bn to promote investment into the city • Infrastructure boost to build northern powerhouse The green light has been given to a host of infrastructure projects as the government seeks to rebalance Britain • Tyrens calls for increase in infrastructure investment Infrastructure, urban design and transport planning firm Tyrens has called for more investment into infrastructure for future development ahead of chancellor George Osborne’s budget announcement Government documents: Click below for Treasury documents Greater Lincolnshire devolution deal West of England devolution deal East Anglia devolution deal Manchester devolution deal Liverpool devolution deal Joint statement on Northern Powerhouse phase two Back to top  CAPITAL GAINS • CGT drop springs ‘tax trap’ A reduction on capital gains tax rates has left second home owners caught in a tax trap, according to experts • Capital gains tax cut Capital gains tax will be cut from 28% to 20% for regular investors, and to 10% for lower-income investors Government documents: Click below for Treasury documents Changes to CGT rates Back to top HOUSING, REGENERATION AND DEVELOPMENT •Major reform of local plan process needed Substantial reform of local plans is needed if the UK is to meet and deliver its housing needs, that was the finding of a report from the Local Plans Expert Group • Local authorities to bid for slice of Starter Home Land Fund Local authorities outside London have been invited to bid for a slice of the government’s £1.2bn Starter Home Land Fund to buy land to enable developers to deliver 200,000 starter homes by 2020 • Lord Heseltine to lead Thames Estuary 2050 Growth Commission Lord Heseltine will lead the Thames Estuary 2050 Growth Commission, which will develop an ambitious vision and delivery plan for the area • Non-resident developer crackdown set for June Measures to stop non-resident developers of UK property paying less tax are set to come into force this summer • Government seeks garden village proposals The government has launched a search for 12 new garden villages across the UK • ISA boost for young savers The chancellor has announced a new ISA scheme aimed at the under 40s which will cover the existing Help to Buy ISAs • Help to Buy gets boost The Help to Buy ISA can now be rolled into the newly announced lifetime ISA • Osborne to unveil garden suburbs plan George Osborne is due to unveil plans for the development of up to 5,000 new homes in “garden suburbs” in Wednesday’s Budget Government documents: Click below for Treasury documents Locally led garden villages, towns and cities Lifetime ISA explained Back to top INDUSTRY REACTS • MIPIM reacts to the Budget A downpour of rain in Cannes appeared to be the appropriate backdrop for chancellor George Osborne’s budget as he announced a relatively gloomy forecast for the UK economy and increased taxes for large-scale property investors • Britain’s growth based on EU inclusion Chancellor George Osborne has used his latest Budget to promote Britain’s need to stay as part of the European Union • Budget 2016: the implications Paul Statham, founder and chief executive of fast-growth medium-sized enterprise Condeco, has outlined how the Budget can help SMEs, saying that it is looking to raise revenue but, since 99.9% of British businesses are SMEs, there must be a focus on helping them to grow   Click here for full details of the Budget 2016 Click here to download a pdf version Back to top 10 things property wants in Osborne’s red case George Osborne will deliver his fourth budget on Wednesday 15 March. The EG team takes a look what to expect and what to watch out for in his latest spending plan. More detail on the Stamp Duty Land Tax surcharge for buy-to-let landlords. Will institutional investors be exempt and at what level? The BPF and others have suggested a 15-home limit to define an institutional investor which should be exempt. Overall, his stamp duty measures have slowed the top end of the residential market and made life harder for second home owners – his desired effect. Further intervention seems unnecessary. A consultation on starter homes is expected to be on Osborne's list, either as part of the Budget or close to it. This would include more details around what kind of developments will have to include starter homes. Business rates. Long-awaited, much maligned, the results of the government’s business rates review should be announced. The outcomes of the business energy tax reform are also expected. There are three potential options here: The Energy Savings Opportunity Scheme becoming the core of a revised environmental reporting requirement for all businesses. The Carbon Reduction Commitment Energy Efficiency Scheme could be withdrawn and a revised Climate Change Levy to take its place. Of course, the final outcome could be some form of new incentive for energy efficiency. Transport: A meaningful response to Lord Adonis’s plans for Crossrail 2 should happen as continued investment in infrastructure is a prerequisite for economic growth. The northern powerhouse. Many expect Osborne to trumpet this although the Midlands engine and others too – will also get more airtime. This would also include infrastructure investment, as the government attempts to boost the northern powerhouse agenda. Devolution deals. Rumours of a West Midlands engine investment fund to be launched. High on the business wishlist would be clarity over the Brexit debate. Sadly, Osborne can’t do this, welcome though it would be. Back to top FROM THE ARCHIVES • Brexit A round-up of latest news and views • Stamp duty prompts resi slowdown The UK housing market is set for a slowdown over the next three months, following a short-term rush on buy-to-let property, according to the RICS • Stamp duty rise prompts scramble Auctioneers are holding extra sales and urging sellers to exploit the “frantic” demand from buyers in the run-up to April’s stamp duty increase • Big landlords could get exemption from stamp duty surcharge Big landlords could be exempt from the 3% stamp duty surcharge on second homes under a Treasury proposal to extend an exemption for corporates and funds to include significant investment by individual purchasers • Starter homes will be unaffordable Discounted starter homes could be out of reach for the majority of families in need of an affordable home, according to analysis released by the Local Government Association • Extra £1.2bn pledged for starter homes David Cameron will announce £1.2bn in extra funding to build 30,000 “starter homes” on brownfield land over the next five years • Radical business rates review announced The government has launched a “radical” review of business rates, which could see the UK move away from a property-based tax • Lord Adonis to draw up proposals for Crossrail 2 Lord Adonis, the chairman of the new infrastructure committee, will draw up proposals for Crossrail 2, HS3 and energy projects ahead of George Osborne’s budget next spring • Is the government serious about funding infrastructure needed by northern powerhouses? Is the government serious about funding the infrastructure needed by the northern powerhouse cities if they are to grow? Nobody is entirely sure, even the government, which is naturally cautious about writing a blank cheque for a project that could run into tens of billions of pounds • What next for the north? Northern powerhouse conference 2016 Northern powerhouse conference 2016: A drink served on the 23rd floor of the Manchester Hilton Hotel is called the Industrialist • Listen: Midlands engine v northern powerhouse. Sir Michael Lyons talks devolution The Midlands should not be chasing Manchester when it comes to devolution and the Midlands engine versus the northern powerhouse, says Sir Michael Lyons • Midlands engine revs up for MIPIM The first “Midlands engine” trade and inward investment missions will take place next year, led by a team of 11 local enterprise partnerships • Mayoral hopefuls back devolution The London mayoral candidates have backed proposals for a devolution deal to London from central government to tackle the housing crisis • Stamp duty devo could net £10bn Stamp duty devolution could boost local authority funding by £10bn a year and should be the next step in the government’s “devolution revolution”, a thinktank has announced • Devolution: In for a long wait? Now the West Midlands Combined Authority is in place, property industry figures want a regional spatial plan. But they may be in for a long wait • Market turmoil a threat to Osborne’s budget plans Public finance experts are warning of a hit to George Osborne’s deficit-reduction plans as a result of the recent stock market turmoil globally • Buy-to-let landlords hit by Scottish Budget Buy-to-let landlords and people buying second homes in Scotland will have to pay an extra 3% charge on purchase prices, Scottish finance secretary John Swinney has announced • Summer Budget 2015 – property round-up Buy-to-let landlords and housing associations have been dealt a double blow by Chancellor George Osborne as he delivered his first Budget of the new parliament Back to top