Here’s a summary of the parts of the new Chancellor Philip Hammond’s first Autumn Statement 2016 (last ever) which affect the property market directly or otherwise.
Philip Hammond confirms the government will still raise the personal allowance to £12,500, and the threshold for the higher tax rate to £50,000, by the end of this Parliament.
- The amount people earn before they start paying income tax will rise to £11,500 (from £11,000) in April.
- Philip Hammond confirmed that corporation tax will be reduced to 17% as planned.
- He is also giving small businesses in rural areas a tax break worth up to £2,900 per year by increasing the Rural Rate Relief.
- The chancellor adds that the Communities Secretary Sajid Javid will announce business rates relief for other companies late
- The Chancellor confirms funding for 40,000 new homes and announces a large-scale pilot to give the right to buy to housing association tenants.
- Infrastructure investment to unlock land for housing with a new £2.3bn Housing Fund to deliver infrastructure for up to 100,000 new homes in areas of high demand.
- Invest a further £1.4bn to deliver 40,000 additional affordable homes. Relaxation on government grant restrictions to allow providers to deliver a wider range of housing types.
- A large-scale regional pilot of Right to Buy for Housing Association tenants – and continued support for homeownership through the Help to Buy: Equity Loan scheme and the Help to Buy ISA.”
- Tax on insurance premiums will go up by 2% and the announcement that the Government is planning a review into the way incorporated businesses are taxed.
- Ban on upfront fees charged by letting agents in England to be implemented “as soon as possible”… This will inevitably push up market rents and invoke massive eruptions in the lettings market.
No change or ease on the heavy taxation of landlords and second home owners set out in George Osbourne’s March Budget. This is very disappointing news for both landlords and investors.
What are your thoughts?