Lonsdale Mortgage Brokers - Autumn Budget highlights relating to property
Friday 24 November, 2017
Amy Kadir, Mortgage Advisor and member of the St Albans mortgage broking team said:
‘Below is information from the recent Autumn Budget that affects anyone owning or looking to purchase residential property. The information is just a guide and we would always recommend our clients speak to their Lonsdale Wealth Management independent financial adviser or contact your Lonsdale Mortgages Mortgage broker so they know how these new policies will affect their own financial planning.’
Amy Kadir, Mortgage Adviser St Albans continues:
‘The budget is really good news for any first time buyers as stamp duty has been abolished for them on home purchases below £300,000. I would recommend any first time buyers wanting to purchase a property contact our Mortgage Brokers in St Albans on 01727 845500 for mortgage advice, as we can recommend suitable mortgage products for you. For more information about buying a property for the first time please refer to our First Time Buyer information on our website.’
Please note: As a mortgage is secured against your property, it may be repossessed if you do not keep up repayments'.
Stamp duty land tax
Stamp duty has been abolished on homes under £300,000 for first-time buyers and they will not pay stamp duty on the first £300,000 for homes worth between £300,000 and £500,000. They will pay the normal rates of stamp duty on the price above that. This will save £1,660 on the average first-time buyer property. This change is effective from 22nd November 2017.
The Office for Budget Responsibility has said that the stamp duty cut will push house prices up. It says it expects this policy to increase prices by 0.3% with most of this effect occurring in 2018.
SDLT – The government will amend SDLT higher rates for additional properties with immediate effect. The changes will benefit those increasing their share of their own home, families affected by a divorce court order, and cases where properties are held in trust for children subject to Court of Protection orders. The government will also remove a potential opportunity for avoidance.
Capital Gains Tax
Capital Gains Tax (CGT) payment window – The introduction of the 30-day payment window between a capital gain arising on a residential property and payment will be deferred until April 2020.
Taxing gains made by non-residents on immovable property – To align the UK with other countries and remove an advantage which non-residents have over UK residents, all gains on non-resident disposals of UK property will be brought within the scope of UK tax. This will apply to gains accrued on or after April 2019. The government intends to include targeted exemptions for institutional investors such as pension funds.
Corporate tax
Changing how non-resident companies’ UK property income and certain gains are taxed – From April 2020, income that non-resident companies receive from UK property will be chargeable to corporation tax rather than income tax. Also from that date, gains that arise to non-resident companies on the disposal of UK property will be charged to corporation tax rather than CGT.
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