Following the Autumn Budget delivered by the Chancellor of the Exchequer Phillip Hammond on Monday 29th October - the last Budget to be announced before Brexit - Winkworth sets out what was included and what this means for the housing market…
After abolishing stamp duty for first-time buyers on properties up to the value of £300,000 (or £500,000 in London, with SDLT payable on the amount between £300,000 and £500,000) in the last Budget, stamp duty relief has now been extended to first-time buyers purchasing property through shared ownership on properties up to the value of £500,000. This announcement is a positive push towards homeownership, and is likely to help with finances for many more people wanting to get onto the property ladder. The benefit is also retrospective, so any first-time buyer who has purchased through a shared ownership scheme over the past year should, depending on the terms, be entitled to claim back the stamp duty they paid, although full details on this are not yet clear.
Last year, the Chancellor announced a £44bn house building fund to help build the homes needed to tackle the housing shortage crisis. This year, a further £500m has been added to the housing infrastructure fund to help with building 650,000 more homes.
It is also planned to make it easier for neighbourhoods to allocate land for housing and sell the homes to local people at a discount.
Shared occupancy lettings relief:
Finally, from April 2020, lettings relief on capital gains tax will only apply in circumstances where the owner of the property is in shared occupancy with the tenant, so it will be abolished for non-resident landlords. No further details on this have yet been given.
Other major announcements in the Budget 2018 included:
- - An additional £500m funding for Government departments to go towards Brexit preparations
- - National living wage to increase from £7.83 to £8.21
- - The personal tax allowance will increase from £11,850 to £12,500 and the higher rate tax allowance will increase from £46,351 to £50,000
- - An additional £1bn funding towards the transition to Universal Credit over the next five years
- - £675m funding towards a ‘Future High Streets’ fund, helping local councils to redevelop their high streets
- - The introduction of a Digital Services Tax of 2% of the money made from UK users of digital tech giants.
- - Small business will now only have to pay half their previous contributions towards the Apprenticeship Levy, now 5% down from 10%
- - The use of PFI (private finance incentives) has now been abolished
- - Schools will receive an extra £400m funding in this financial year
- - A further £1bn funding for the defence budget for the rest of this year and next year
If you’d like to discuss how any of these announcements might affect you and your move, please don’t hesitate to get in contact with your local Winkworth agent.