The RICS has written an open letter to chancellor Gordon Brown urging him not to view property as “an easy target” for tax hikes in next month’s Budget.
RICS chief executive Louis Armstrong writes: “UK business property tax receipts are higher than those of any competitor developed country and we would ask you not to increase this burden further.”
He adds that changes put forward in the Modernising Stamp Duty consultation document “will raise the levy on individual transactions by at least 600%”.
The changes include plans to levy stamp duty on leases.
The letter also asks Brown to put his weight behind the creation of real estate investment trusts (REITs).
Armstrong writes: “The collapse of the equities market is in stark contrast to the returns provided by property investment over the last 10 years and this has exposed many pension funds to significant losses.
“By facilitating the creation of real estate investment trusts to enable greater indirect investment in property, the government may help to mitigate such losses by helping pension fund investors and others, including smaller company pension funds and charities, to develop a more balanced asset-class portfolio.”
It had been thought that the Budget date could be delayed by the impending war with Iraq, but the Treasury has confirmed that the chancellor will make his speech on 9 April.
EGi will report on all of the property-related Budget news as it breaks.
References: EGi News 19/03/03
