Last month we reported on the Stamp Duty changes which will come into force on residential property.
As suspected, an additional 3% Stamp Duty Land Tax will be payable on the purchase of second homes, holiday homes and investment properties.
The Chancellor’s recent budget also included a number of other key points:
- Capital Gains Tax (CGT)
For disposals made on or after 6 April 2016, the higher rate of Capital Gains Tax (CGT) will be cut from 28% to 20% and the basic rate from 18% to 10%.
- New Stamp Duty Rates for Commercial Property
The new rates and tax bands will be 0% for the portion of the transaction value up to £150,000; 2% between £150,001 and £250,000, and 5% above £250,000.
- Income Tax
An individual’s personal allowance will increase to £11,500 and the higher rate threshold will increase to £45,000 from £42,385.
- Shared Parental Leave (SPL)
A consultation will begin in May to consider how shared parental leave can be introduced for employed grandparents.
- Termination Payments
The initial £30,000 of an employee’s termination payment, as part of any exit arrangement, will continue to remain exempt from income tax.
For more information on Stamp Duty and Tax rates, please speak to our Conveyancing team in our Lower Earley or Henley-on-Thames offices.