Blick Rothenberg

Budget predictions: Property/stamp duty land tax and infrastructure

02.03.2017

Our experts are looking at what the Chancellor could, should and shouldn’t do and they have their say.

With regards to property/stamp duty land tax, the Chancellor:
 
  • "Should use the tax system to boost the supply of affordable housing by introducing capital taxation reliefs to incentivise landowners and developers to assist local authorities to meet their housing tartgets." Frank Nash
  • "Should  allow mortgage interest relief to landlords that supply low cost / affordable housing." Genevieve Moore
  • "Should scrap SDLT and CGT/Corporation tax on the sale of land for residential development where the landowners/developers jointly work to meet Local Authorities’ targets on affordable housing numbers (per new definition). This could be extended to all land where reasonable mixed use is evident, such as shops, schools and doctors’ surgeries. No distinction between greenfield and regeneration land, but the greenbelt land should remain subject to tax. Truly redundant commercial buildings such as telephone exchanges, ex-airfields, mills, etc. should also be converted or developed into housing." Frank Nash
  • "Should introduce 20% capital gains tax rate on property sales made to first time buyers of properties under £450,000 in Greater London and £250,000 elsewhere." Genevieve Moore
  • "Should significantly increase the 10% threshold for SDLT from £925k to £1.5m or even £2m (i.e. to the sort of level originally regarded as ripe for a “mansion tax”." Alan Pearce

Partner Frank Nash comments on what the Chancellor should do with regard to infrastructure:
 
  • "In light of Brexit, to be ‘open for business’ this and successive governments should reinvest in infrastructure, which (apart from 1950-1960) has simply been a repair job since the 19th century. HS2 recently got Royal Assent and the Government has promised to increase house building to 220,000 homes each year, nationalising some development in the process, and there is the ‘northern powerhouse’ also. The government should ensure that the sources or capital – human and financial – remain open as a hard Brexit might limit these infrastructure plans."

For more information please contact Genevieve Moore , Frank Nash or Alan Pearce .