George Osbornes 2014 Budget was announced today announced by the BBC as having “Tax changes to boost pensioners and savers”.
Mr Osborne said his statement would be “a Budget for building a resilient economy”.
However how much of this will impact, either positively or negatively, for landlords and property professionals?
Key Housing market points:
- Housing market is under scrutiny to avoid a bubble.
- House building is up 23%.
- Finance being offered to smaller house building firms – £500M fund being opened to small developers.
- Finance being made available for people to build their own homes.
- Regeneration of run down council estates.
- Extending Help to Buy until 2020.
- New homes to be built in the South East including 15,000 new homes in Ebbsfleet.
- Stamp duty thresholds not mentioned
- Stamp duty on homes worth more £500,000 to rise to 15% for those bought by companies, as part of tax avoidance measures
- Buying property in Limited Company gets a further disadvantage.
Other Key points from the 2014 Budget:
- Base personal allowance increase by £500 to £10,500
- Freeze on petrol duty, scotch whisky and cider duty
- 1p cut from a pint of beer – cigarette prices up by 2% above infaltion
- 40p income tax threshold rise to £41,865 next month and 1% further next year to £42,285
- Cash and savings ISAs merged into single new ISA with annual tax-free savings limit of £15,000
- Cap on premium bonds lifted from £30,000 to £40,000 in June, then £50,000 next year
- Welfare budget to be capped at £119bn for 2015-16, rising in line with inflation
- New twelve-sided £1 coin to be introduced in 2017
Mr Osborne told MPs: “The economy is continuing to recover and recovering faster than forecast… we held our nerve, we’re putting Britain right. But the job is far from done.”
Labour leader Ed Miliband said that in his hour-long statement, the Chancellor “did not mention one central fact – the working people of Britain are worse off under the Tories, living standards down month after month, year after year”.