Budget 2021 | Property Tax measures announced

Property Tax announcements from the 2021 Budget

Support for the residential property market

• Up to the end of June 2021 there will be no SDLT on the first £500,000 for purchases of homes in England and Northern Ireland, where this is the purchaser’s sole residence. The 3% surcharge will remain in place if this will not be the purchaser’s only residential property or if the purchaser is a company.
  
  
• From 1 July to the end of September 2021 the holiday amount reduces to £250,000.
  
  
• Importantly both the new dates of the end of June and September are ‘cliff edges’ so a purchase must be completed to take advantage of the SDLT holiday.
  
  
• The above does not apply to Scotland where the LBTT or to Wales where the LTT will return to the usual rates from 31 March 2021.
  
  
• This is not only a great boost for those people seeking to get onto the property ladder, especially in conjunction with the news that 95% LTV mortgages will soon be available again, but also good news for those looking to move.

Increase in funding for apprenticeships

• This will help with the current shortage of skilled labour particularly for SME construction companies.

Establishment of the Modern Methods of Construction (MMC) Taskforce

• Backed by £10m of seed funding, this will accelerate the delivery of MMC homes in the UK which is also good news for the housing market.

Increase in Capital Allowances to 130%

• This is great news for Commercial Property Investors and the Construction sector, allowing them to invest in new equipment for growth at a reduced cost of £75.30 for every £100 of expenditure. The good news is obviously diluted to some extent by the future increase in corporation tax rates.