Bishops Move looks at key elements of the autumn statement: fuel duty price freeze; stamp duty rates; and the introduction of charging non-UK residents capital gains tax on sales of UK properties.
Grant Bishop, Bishop’s Move International Director comments on the sale of properties owned by foreigners in the UK: “The notion of charging non-UK residents capital gains tax in a bid to cool London property prices was perhaps an obvious and predictable decision. We have seen first-hand how London and the south-east are racing away from the rest of the UK economically and this is also reflected in the property market where it seems the north and south divide is getting wider. Figures show that house prices in London rose by 10% in one month whilst in areas such as the West Midlands, they have fallen. Our own direct enquiries from May-Sept this year we received more than double the amount of branch or website enquiries for London relatively compared to York, for example. However, the chancellor must be careful not to scare this group of investors away – there is a fine balance that must be met with caution. The old adage has been that “Britain is open for business” and we long for that to be the case. We want to ensure that people see the UK economy as an attractive investment and that goes for the property market as well. Let’s not push these wealthy individuals even further into the arms of tax havens throughout Europe.”
Alistair Bingle, Bishop’s Move managing director comments on the fuel duty price freeze: “The past 12 months has brought good news to businesses that rely on the roads on which to operate. By announcing that there is a firm commitment to the fuel duty freeze up until the next election then this gives industries, such as haulage, the breathing space in which to plan and grow over the next 18 months and thus, create more job opportunities. This news is welcomed by our industry and, as the housing market picks up, we can now simply focus on getting Britain moving once more.”
Alistair Bingle also comments on stamp duty: “The average cost of a home is currently £247,693 therefore it is edging towards the £250,000 threshold. More first time buyers are being dragged into paying 3pc stamp duty, particularly those in and around London; a location whose property market is moving ahead of the rest. Whilst Scotland is set to change the face of stamp duty so it appears more like an income tax, where a £250,001 property would attract a 1% charge on the first £250,000 and a 3% charge on the extra £1, I propose we introduce a firm and strict stamp duty holiday for first time buyers. This could be introduced at various levels across different regions across the UK. For instance, a stamp duty cut in certain regional areas would encourage buyers to move to a region thereby stimulating regional economic growth rather than buyers moving to over populated areas which in turn pushes up house prices due to supply and demand.”