E3 Consulting’s Reaction to Autumn Statement – Real Estate Tax Update

The Chancellor's Autumn Statement, made on 5^th December, focused on economic performance and helping businesses prosper and grow - through reduced costs from Business Rates and Employment of under 21 year olds.  Further assault continues on tax abuse and evasion to ‘level the playing field for all tax payers.

A number of these impact the property and construction sectors and E³ Consulting’s Managing Director, Alun Oliver, highlights here a selection of  the key property and tax issues for your information – see our fuller analysis in the attached PDF to the right.  If you wish to discuss any specific measures please do contact us. 

Energy efficiency support for landlords 

The government will introduce a £90 million scheme to support private landlords in improving the energy efficiency of their properties, which will improve around 15,000 of the least energy efficient rental properties each year for 3 years.

Business premises renovation allowance (BPRAs)

Following a technical review of the business premises renovation allowance published on 18 July 2013, the government is making changes to simplify the scheme, make it more certain in its application and reduce the risk of exploitation, with effect from April 2014

Simplification is always appreciated as BPRA rules are particularly complex – a watching brief that Government does try to reduce the tax scope and benefit of the current 100% capital allowances relief at the same time – devil in the detail of forthcoming Finance Bill 2014!

Business rates: indexation

The government will cap the RPI increase in business rates at 2% for 1 year from 1 April 2014.

Business rates: discount 

The government will introduce a business rates discount of £1,000 for retail and food and drink premises with a rateable value below £50,000 for 2 years up to the state aid limits from 1 April 2014.

At last the message is getting through following significant pressure and lobbying from industry, these measures will all help reduce the costs of doing business on Britain’s high streets and improve business prospects for growth.

Our detailed review is available from the side panel.