Gary Jackson, ABG’s Senior Partner, chaired the session and started off by asking us to consider how much we would be paying today for a pint of milk or loaf of bread had the cost risen since the 1970’s in line with property prices. Nobody in the room was able to come up with an answer so Gary enlightened us! Today a loaf of bread would have been £4.36 and a pint of milk a staggering £10.45.
Gary then turned his attention to Clement Attlee. It was during this Government back in 1947 that the Town and Country Planning Act was introduced. This Act set out that the majority of new UK housing should be provided by the Government and the building of new private homes should be heavily restricted.
Mark Rubinson, an ABG Partner with a specialist interest in Property Tax, then opened the session focusing on the UK property market and how property prices in the UK continue to soar with the average UK property now worth £291,000.
So, property tax changes, what’s happening? Some of the biggest changes are to buy to let properties.
Currently if you own a buy to let property you are able to claim a 10% wear and tear allowance and gain full tax relief on the mortgage interest at your highest tax rate.
With effect from 6 April 2016 the wear and tear allowance will be abolished and will be replaced with a tax relief equivalent to the actual cost of the replacement furniture. In addition to this, tax relief on mortgage interest will be restricted to basic rate only from 2020/2021. This is being phased in over a number of years commending in 2017/18.
The session continued through the morning with Mark and Victor looking at other areas of property tax such as Principal Private Residence Relief (PPR), inheritance tax issues on the family home, Business Property Relief, Stamp Duty changes, ATED (Annual Tax on Enveloped Dwellings), rental income issues and property related Entrepreneurs’ Relief issues.
If you are a property investor and would like to read more about the forthcoming changes to buy to let property please download our whitepaper or contact us on 020 7330 0000 to speak to one of our team.
Kay Merryman, Marketing Manager – firstname.lastname@example.org