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Budget 2018 announced


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34 minutes ago, AndyFTB said:

Is anyone else watching this?  Does he think this is "Stand up" comedy.  He has been going on for well over 5 minutes, made half a dozen very bland/cringey jokes, and as yet not one policy announcement.

Man is a moron.

Unfortunately he's not a moron. For example I'm sure further business rates relief wasn't for the benefit of his own property firms at all, like last time.

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Just now, oatbake said:

No repealing of Section 24 though... another year closer to bankruptcy for many landlords! 

See two comments I made above.

He has changed s24 effectively without mentioning it. If you view s24 as a gov intervention to encourage some BTL into ltd cos, the changes he announced are a tighnening of the screws.

Removing lettings relief will increase CGT for a LL moving his BTLs to a Ltd.

Putting HMRC at top of creditors for Ltd will reduce amount that can be borrowed at re-morgage after BTLs have increased in value [when LL wants to extend portfolio using equity gained on property aquired some years ago]. This is effectively retrospective and I wonder if they've made an inventory of existing Ltds holding lots of BTL. Potential problem for banks as well as BTL companies.

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Just now, ebull said:

Putting HMRC at top of creditors for Ltd will reduce amount that can be borrowed at re-morgage after BTLs have increased in value [when LL wants to extend portfolio using equity gained on property aquired some years ago]. This is effectively retrospective and I wonder if they've made an inventory of existing Ltds holding lots of BTL. Potential problem for banks as well as BTL companies.

Hmm the small print not mentioned in the speech means this effect won't happen. Wonder why??

https://www.gov.uk/government/publications/budget-2018-documents/budget-2018#tax

Quote

This reform will only apply to taxes collected and held by businesses on behalf of other taxpayers (VAT, PAYE Income Tax, employee NICs, and Construction Industry Scheme deductions).

 

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31 minutes ago, Democorruptcy said:

No SDLT up to £500k on shared ownership

Do Castlemead do shared ownership?

He's also introducing a new Structures and Building Allowance:

https://www.gov.uk/government/publications/capital-allowances-for-structures-and-buildings-technical-note

Relief for non-residential construction. Castlemead do healthcare and nursing home construction, and don't think they're defined as residential.

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The Budget announces that the government has launched a consultation on new permitted development rights to allow upwards extensions above commercial premises and residential properties, including blocks of flats, and to allow commercial buildings to be demolished and replaced with homes.

 

and

 

Quote

Land value uplift – The government confirms that it will introduce a simpler system of developer contributions that provides more certainty for developers and local authorities, while enabling local areas to capture a greater share of uplift in land values for infrastructure and affordable housing. The reforms include simplifying the process for setting a higher zonal Community Infrastructure Levy in areas of high land value uplift, and removing all restrictions on Section 106 pooling towards a single piece of infrastructure. The government will also introduce a Strategic Infrastructure Tariff for Combined Authorities and joint planning committees with strategic planning powers.

 

Across Camden, Islington, Hackney the affordable housing contribution per new/extra housing unit is about 50k [they each have a different system but result is about same].  Applies both to converted houses and new build.

In addition CIL will be around 50k [charge is per m2 and includes some amount for mayor and some for crossrail].

AFAIK both are avoided for commercial [permitted development] conversions.

So 100k of your new 400k 1-2 bed flat is straightout tax to council & largely unavoidable.  Islington have recently won a court case/apeals against developer wanting to develop ex-territorial army building on Holloway Rd. [A1] without paying.

IMO puts upward pressure on house [flat] prices. OOOH puts slight downward pressure on prices of big houses which could otherwise be more profitable to split into flats.

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42 minutes ago, ebull said:

See two comments I made above.

He has changed s24 effectively without mentioning it. If you view s24 as a gov intervention to encourage some BTL into ltd cos, the changes he announced are a tighnening of the screws.

Removing lettings relief will increase CGT for a LL moving his BTLs to a Ltd.

Putting HMRC at top of creditors for Ltd will reduce amount that can be borrowed at re-morgage after BTLs have increased in value [when LL wants to extend portfolio using equity gained on property aquired some years ago]. This is effectively retrospective and I wonder if they've made an inventory of existing Ltds holding lots of BTL. Potential problem for banks as well as BTL companies.

I think lettign releif appleis o holiday lets too.

Good. getting shot o that close one relief.

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From the Red Book:

'Help to Buy Equity Loan – The Help to Buy Equity Loan was introduced in 2013 to support the housing market in challenging conditions. By March 2021, the government expects to have invested around £22 billion in the scheme, supporting up to 360,000 households into homeownership. Conditions in the market have improved since 2013: there is a growing number of high Loan to Value products available to first-time buyers, and housing supply continues to increase. To ensure future support is targeted at those who need most help into homeownership, the Budget announces that from April 2021, a new Help to Buy Equity Loan scheme will run for 2 years before closing in March 2023. The new scheme will be available for first-time buyers only, and for houses with a market value up to new regional property price caps, as set out in Table 4.2. These caps are set at 1.5 times the current forecast regional average first-time buyer price, up to a maximum of £600,000 in London. The government does not intend to introduce a further Help to Buy Equity Loan scheme after March 2023.'

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