Budget 2016 - Reaction

Chancellor George Osborne MP delivered his Budget statement on Wednesday 16th March 2016. E³ Consulting highlights the key Property & Construction aspects.

Tight Rope

Chancellor George Osborne delivered his eighth Budget Statement Today on Wednesday 16th March 2016 and ‘Stability’ was one of today’s ‘buzz words’!

E³ Consulting highlights the initial key Property & Construction aspects – as referenced from the HM Treasury’s Budget press releases and Red Book

1.264 The Northern Ireland Executive has set the boundaries of a pilot Enterprise Zone near Coleraine. The government will legislate to ensure that Enhanced Capital Allowances can be offered within the Enterprise Zone, with the first investors expected on site later in 2016.  See also 2.237.

2.91 Business Premises Renovation Allowance – The government confirms that the Business Premises Renovation Allowance will expire on 31 March 2017 for corporation tax and 5 April 2017 for income tax as legislated in Finance Act 2012.

2.95 Non-resident UK property development taskforce – Alongside the new legislation, HMRC will create a new taskforce to ensure tax on these profits is effectively collected by identifying and investigating offshore businesses which try to avoid paying tax.

2.129 Business rates: valuation reform – The government will aim to introduce more frequent (at least 3 yearly) revaluations of properties in England for business rates purposes and will publish a discussion paper in March 2016 outlining options to deliver this.

2.186 Stamp Duty Land Tax (SDLT): reform of non-residential rates – The government will change the calculation of SDLT on freehold and leasehold premium non-residential transactions so the rates apply to the portion of the purchase price within each band. The government will also amend the rates and thresholds so that the portion of the transaction value up to £150,000 is charged at a rate of 0%, the portion between £150,001 and £250,000 is charged at a rate of 2%, and the portion over £250,000 is charged at a rate of 5%. SDLT on non-residential leasehold rent transactions, where the rates already apply to the portion of the purchase price within each band, will be reformed to include a new 2% rate for leasehold transactions with a Net Present Value over £5 million. These changes will take effect on and after 17 March 2016.  (Finance Bill 2016).

2.313 New Enterprise Zones and extensions – The government will create a new Cornwall MarineHub Enterprise Zone following the transfer of Wave Hub (a wave energy testing facility) to Cornwall Council. The government will also extend the Sheffield City Region Enterprise Zone subject to necessary approvals and agreements, and create new Enterprise Zones at Brierley Hill and Loughborough and Leicester subject to business case.

There are many different aspects of these Government announcements. Most will be covered by the draft legislation to be published in the next few days and weeks, but some are longer term or simply promises to consult on certain aspects. As more detail becomes available we shall comment further on those matters that are most pertinent to our clients – operating across the property and construction sectors, as well as owners and occupiers from wider industry.

E³ Consulting provides specialist property tax advice to owners, investors and occupiers of UK real estate from offices in Southampton and London advising on Capital Allowances, Land Remediation Relief, VAT, Repairs and Maintenance and Community Infrastructure Levy (CIL). Please see our website or follow us on twitter to keep up to date with views and technical updates on property tax matters.

 

Our detailed review is available from the side panel.

 

LinkedIn

Share this article

Document downloads

RSS

This page can be found in the following news feeds:
E3 Consulting News

Main Office: 2 Meridians Cross, 7 Ocean Way, Ocean Village, Southampton, SO14 3TJ - T: +44 (0) 345 230 6450

London office: 41 Lothbury, London, EC2R 7HG

Website by: Wholething