Chancellor Rishi Sunak outlined a new £65bn support package in his second Budget aimed at restarting the UK’s economy after lockdown. With measures to boost the residential market and extend furlough support, the chancellor promised to do “whatever it takes” but also paved the way for future tax rises. For commercial property, we think the collective support for renewed business investment should break the tenant decision-making standstill of the last few years and boost office markets in particular.
10 measures to look out for in the Budget:
- Extended the current 100% 2020/2021 business rates holiday for the retail, hospitality and leisure sectors for an extra three months to the end of June and then provide an up to two thirds business rates holiday for the following nine months.
- Furlough to be extended until the end of September.
- VAT rate for hospitality firms to be maintained at reduced 5% rate until September.
- Corporation tax on company profits to rise from 19% to 25% in April 2023.
- Firms will be able "deduct" investment costs from tax bills, reducing taxable profits by 130%.
- Stamp duty holiday on house purchases in England and Northern Ireland extended to June, with no tax liability on sales of less than £500,000.
- New UK Infrastructure Bank to be set up in Leeds. It will have £12bn in capital, with aim of funding £40bn worth of public and private projects.
- 750 UK civil servants to be relocated to new Treasury campus in Darlington.
- First eight sites for freeports in England announced.
- £1bn Towns Fund fund to promote regeneration in 45 English towns.
Aaron Russell from our New Homes Team, Belfast has said:
"The recent extension greatly benefits the Northern Irish #residential market as our average house prices sits at £143,205. Given the revised Stamp Duty calculation until September, this allowance will further benefit home buyers throughout this period."
10 measures to look out for in the Budget:
- Extended the current 100% 2020/2021 business rates holiday for the retail, hospitality and leisure sectors for an extra three months to the end of June and then provide an up to two thirds business rates holiday for the following nine months.
- Furlough to be extended until the end of September.
- VAT rate for hospitality firms to be maintained at reduced 5% rate until September.
- Corporation tax on company profits to rise from 19% to 25% in April 2023.
- Firms will be able "deduct" investment costs from tax bills, reducing taxable profits by 130%.
- Stamp duty holiday on house purchases in England and Northern Ireland extended to June, with no tax liability on sales of less than £500,000.
- New UK Infrastructure Bank to be set up in Leeds. It will have £12bn in capital, with aim of funding £40bn worth of public and private projects.
- 750 UK civil servants to be relocated to new Treasury campus in Darlington.
- First eight sites for freeports in England announced.
- £1bn Towns Fund fund to promote regeneration in 45 English towns.
Aaron Russell from our New Homes Team, Belfast has said:
"The recent extension greatly benefits the Northern Irish #residential market as our average house prices sits at £143,205. Given the revised Stamp Duty calculation until September, this allowance will further benefit home buyers throughout this period."
Register your interest