Yesterday’s budget, the fourth in 12 months, had little to get excited about, however there were a few announcements to affect both Proplend Lenders and Borrowers.
- Sweet news for savers and investors as the chancellor announced that the ISA allowance will be raised to £20,000 for 2017/18 tax year. This should coincide nicely with the launch of the majority of Alternative Finance ISAs (IFISA) as very few platforms will have the authorisation to offer an ISA until then, this is thanks mainly to the backlog of applications with the FCA
- Second homes and buy to let residential property will be subject to the 3% premium announced in the Autumn Statement with no special treatment for larger investors. The expected exemption for investors with over 15 properties was not forthcoming
- Commercial stamp duty 0% rate on purchases up to £150,000, 2% on next £100,000 and 5% top rate above £250,000
- Corporation tax to fall from 20% to 17% by 2020
- Annual threshold for 100% relief on business rates for small firms to rise from £6,000 to £12,000 and the higher rate from £18,000 to £51,000 exempting 600,000 firms will be great news to some of the tenants in the commercial properties on the Proplend platform
- The reduction in Capital Gains Tax from 28% to 20% and from 18% to 10% looked, for a short time like positive news for buy to let investors, until it was announced that residential property will incur an 8% premium
- Sharing economy to be given a boost with two new tax-free £1,000 allowances, one for selling goods or providing services, and one for income from property you own
