Autumn Budget 2017: Property-related taxes

The Autumn Budget has seen a number of revisions for property-related taxes.. and it is good news for first time buyers.
Mileage rates for landlords

Landlords often claim an allowance for their fuel costs when travelling between their properties. To reduce the administrative burden, the Government will extend the option to use mileage rates to individuals operating property businesses, on a voluntary basis.

Capital Gains Tax payment window

In 2015, George Osbourne announced that anyone who sells residential property and who realises a capital gain would have to pay the Capital Gains Tax (CGT) within 30 days. This was due to come in from April 2019.

Without any explanation, the introduction of this 30 day payment window has been deferred until April 2020.

Stamp Duty Land Tax for first-time buyers

First-time buyers of properties worth up to £500,000 are to be given a Stamp Duty Land Tax (SDLT) exemption on their first £300,000. The relief will not apply for purchases of properties worth over £500,000.

Stamp Duty Land Tax higher rates

The Government will amend the SDLT higher rates for additional properties with immediate effect. There is little detail but apparently the changes will benefit those increasing their share of their own home, families affected by a divorce court order, and cases where properties are held in trust for children subject to Court of Protection orders.

The Government will also remove a potential opportunity for avoidance.

Council Tax empty homes premium

Following on from reports that many properties, primarily in London, sit empty, the Government is keen to encourage the owners to bring them back into use and so local authorities will be able to increase the Council Tax premium from 50% to 100%.

Further information on the impact of the Budget can be found here.
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