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News

By George he’s done it!

Thursday, March 17, 2016 By George Dobson BSc (Hons) MRICS

The commercial property industry wakes up today, coming to terms with George Osborne’s shock increase in stamp duty on higher value commercial properties.

The 2016 Budget Speech of yesterday provided the details of the new rates, which in summary will be; 0% from £0 to £150,000, 2% between £150,001 to £250,000, and 5% above £250,000. The change is massive and follows the changes to the residential stamp duty.

Up to now, stamp duty was charged at 1% on properties sold for £150,000, 1% between £150,000 and £250,000, 3% on between £250,000 and £500,000 and finally 4% of £500,000 +.

The chancellor said this meant that all freehold and lease premium transactions below £1.05m would pay the same or less in SDLT.

A new 2% rate for leasehold rent transactions where the net present value is above £5M, has also been introduced as part of the budget.

Will these changes cause a slowdown in economic growth? Only time will tell, but it seems clear that smaller property investors are looking like the early benefactors of this change.

For more information on the disposal of commercial property, please contact George Dobson on 01273 701070 or dobson@gravesjenkins.com