What the Budget Really Means to Us

Since the Emergency Budget, professionals have been placing their views and thoughts with us and here we take a look at some of their own advice.  Please obtain professional advice before making decisions.

VAT

Will rise from 17.5% to 20% from 4th January.  This will have an affect on surveys, checks and fees.

Stamp Duty

1st time buyers paying no stamp duty upto £250K.  However, the budget said this was under review.

Stamp Duty

No mention of increasing the duty on properties over £1Million.

CGT

Higher Earners will pay 28% CGT above the annual allowance of £10,100.  An important note is that owners of second homes or buy to let properties will continue to pay CGT at 18% if they are basic rate tax payers.  The tax covers land, buildings personnel possessions worth £6K or more, shares or business assets.  The rate was reduced from 40% to 18% in April 2008, so many 2nd homeowners that bought these at a time CGT was at 40% may be relieved it only rose to 28%.

Housing Benefit

The Govt has introduced new limits for housing benefit.  £400 per week for +3 bedroom property, £250 per week for a one bedroom flat, £290 per week for a 2 bedroom property, £340 per week for a 3 bedroom property.