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Budget 2017 - implications for Real Estate

Earlier this afternoon, Chancellor Philip Hammond presented the 2017 Spring Budget. What does this mean for the UK Real Estate market?

Business rates

The key announcement for property owners and occupiers is about business rates.

The next business rates revaluation is due very shortly, in April 2017. There has been a lot of concern amongst businesses that this will lead to increased bills that they can ill afford. The government has announced £435 million of support for businesses facing significant increases in business rates. Further measures include:

  • £300m hardship fund for small businesses worst affected;
  • Pubs with a rateable value of less than £100,000 will get a £1,000 discount on the rates that they pay; and
  • Any business losing existing relief will not pay more than £50 a month.

In 2016, the government announced an aim to deliver more frequent revaluations of properties – at least every three years. It has stated that it will set out its preferred approach for delivering on this in the Autumn 2017 budget.

SDLT

The decision to delay the reduction in the time period allowed for  filing a Stamp Duty Land Tax return and paying any duty from 30 days to 14 days is very welcome. This is to be delayed until 2018-19.

Energy

In the energy sector, the budget announcements do not lead to any immediate changes. Further details on carbon prices for the 2020s will be set out in the Autumn budget. The Levy Control Framework is to be replaced by a new set of controls, which will be set out later in the year. We will continue to monitor these developments and report on them.

Other announcements

Other announcements that will be of interest to those in the real estate market include:

  • The decision to enable the creation of new selective schools and 110 new free schools;
  • £690 million to be competitively allocated to local authorities to tackle urban congestion; and
  • Transport spending of £90 million for the North and £23 million for the Midlands to address pinch points on roads.

Contributor: Alexandra Holsgrove Jones

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at March 2017. Specific advice should be sought for specific cases. For more information see our terms & conditions.

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