Property taxes

Business rates - retail
Business rates bills will be reduced for two years from April 2019 by one-third for retail properties with a rateable value below £51,000, subject to state aid limits. This will benefit up to 90% of retail properties.

Business rates - self-catering and holiday let accommodation
The government will consult on the criteria under which self-catering and holiday lets become chargeable to business rates rather than council tax.

Business rates - public lavatories
A 100% business rates relief will be introduced for all public lavatories to help keep these amenities open.

Stamp duty land tax (SDLT)
First-time buyers’ relief in England and Northern Ireland will be extended so that all qualifying shared ownership property purchasers can benefit, whether or not the purchaser elects to pay SDLT on the market value of the property. The change will apply to transactions with an effective date of 29 October 2018 and will also be backdated to 22 November 2017.

The government will publish a consultation in January 2019 on an SDLT surcharge of 1% for non-residents buying residential property in England and Northern Ireland.

Non-UK residents’ gains
Gains that accrue to non-UK residents on non-residential property will be subject to tax. Non-UK residents will also be subject to tax on gains in diversely-held companies, those widely-held funds not previously included, and life assurance companies. They will also be taxed on gains on interests in UK property-rich entities, such as shares in companies that derive at least 75% of their value from UK land. The measures which have been previously announced will take effect for disposals made after 5 April 2019 and there will be an anti-forestalling rule for arrangements entered into after 21 November 2017.

Annual tax on enveloped dwellings
The annual tax on enveloped dwellings (ATED) for 2019/20 will be increased in line with inflation, as detailed in the table below:

Property value

Charge for tax year
2018/19

Charge for tax year
2019/20

More than £500,000 but not more than £1m

£3,600

£3,650

More than £1m but not more than £2m

£7,250

£7,400

More than £2m but not more than £5m

£24,250

£24,800

More than £5m but not more than £10m

£56,550

£57,900

More than £10m but not more than £20m

£113,400

£116,100

More than £20m +

£226,950

£232,350

Think ahead
Three-quarters of any interest tax relief for personal buy-to-let borrowing will be limited to a 20% tax credit from 2019/20.
Make sure you understand the impact of this latest change on your overall tax position.

Think ahead
From 6 April 2020, CGT on residential property will be payable within 30 days of sale.
If you are thinking of selling buy-to-let property, the existing rules can give you up to almost 21 months before any tax bill arrives.

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