The budget inevitably posed challenges to the Chancellor both politically as well as economically. His task was even more unenviable given the oscillations in economic forecasting brought about by unforeseen change in international economic activity as well as the gyrations we have recently witnessed in financial markets. The sugar levy is expected to raise £500 million per annum in due course; given the desire for some inflation to always be present, ironically this may be a healthy economic attribute!
Our interest remains focused on taxation changes for our clients and the need to be aware of the continuous tinkering in a variety of areas.
The property market remains a target particularly for the buy to let investor not only with the significant changes already announced prior to Budget Day but also with the exclusion of the announced CGT rate reduction for residential properties. Residential property capital gains remain taxable at 28%.
For the commercial property investor / developer new rates of SDLT have been announced with immediate effect.
There are key points for clients to consider before 5 April 2016 particularly with the increases in dividend income tax rates. If you would like to discuss this or any other issue raised in this article, please do not hesitate to contact us.
Please click here to read our Budget Summary Report.