The Chancellor, Rishi Sunak, delivered his budget on the 27th October. Below is an overview of the key property related announcements:-
Cladding Crisis
The Government confirmed that £5bn will be put towards the remediation of buildings with unsafe cladding.
This will be funded in part by a new Residential Property Developer’s Tax (RPDT) that will come into force in April 2022. It is intended to target the largest UK residential property developers; those with annual profits over £25m will be levied this tax at a rate of 4%. The Government has said that the tax should be time limited, but currently this has not been set.
Capital Gains Tax extension window
The Government confirmed that as from the 27th October, people selling UK residential property will now have 60 days from the date of completion to report and pay their CGT bill. The previous deadline was 30 days. This requirement primarily (but not exclusively) affects landlords, second home owners, divorcing couples and trusts and estates This change applies to both UK and non-UK residents. For mixed-use properties, it will only apply to the residential element of the gain.
New Homes Pledges
The Chancellor confirmed funding for its housebuilding programme which aims to turn ‘Generation Rent into Generation Buy’ with a further £1.8bn investment as part of the Government’s commitment to spend £10bn unlocking more than a million new homes by 2026.
The planned £11.5bn investment into the Affordable Homes Programme was also reconfirmed which will deliver up to 180,000 affordable homes.
Whether you are a first time buyer or a seasoned property developer if you require any assistance in relation to residential property, our experienced solicitors at Alfred Newton are here to help. We pride ourselves on providing a personal service and like to build long standing relationships with clients, often serving generations of the same family.
With five offices across Stockport & Cheshire, we are ideally positioned to serve Stockport, South Manchester and Cheshire, but also act on matters Nationwide, including London.
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