haysmacintyre Property Briefing Winter 2018
Welcome to our Winter 2018 Property Briefing in which we cover a range of issues affecting the property sector. Jeremy Cook, Chief Economist and Head of Currency Strategy at World First, casts his expert eye over the last eighteen months and looks forward to what the future holds for UK PLC. James Thornton, Chief Executive at Mayfair Capital Investment Management, looks at the opportunities that may arise from London’s changing property scene. Whilst thanking Jeremy and James for their articles contained in this briefing, I would also like to take the opportunity to thank them both for their input and commitment to our very successful seminar last year on the subject of what the future holds for property; thank you both.
The first Autumn Budget from Philip Hammond certainly generated headlines in the property sector. Whilst the relief from SDLT for first buyers grabbed the headlines at the time, the outcome appears to be more consistent with tomorrow’s “chip wrapper” scenario. However, for nonresidents investing in UK property the 2017 Autumn Budget is likely to linger longer in the memory as the Chancellor looks to fill his coffers by bringing non-residents into the clutches of UK tax. Our article on the Budget looks at these, and other, issues particularly pertinent to the property sector.
In only a few months’ time landlords may find themselves unable to legally let buildings with an EPC rating worse than an “E” as one of the key aspects of the Energy Act 2011 gets implemented. Whether a property will be subject to the new rules is not straightforward, but landlords faced with upgrading their properties need to plan effectively to minimise the after tax cost. We look at what the changes in April 2018 will mean and how tax reliefs might help lessen the blow.
Simplification and VAT are two words not often found in the same sentence, especially with all the pitfalls that VAT can present in property transactions. However the Office of Tax Simplification managed this when it issued its report last year on how VAT might simplified. Whether the 86 page OTS report is a reflection of how much VAT might be simplified, or the depth of the analysis, is a moot point but it will be interesting to see how many of the recommendations are implemented by HMRC. With VAT being an EU tax, the scope for simplification post Brexit is there, but whether the spirit is willing is another matter. History suggests simplification comes with anti-avoidance making any net benefit small at best, if at all. Our article looks at some of the ideas from the OTS that would particularly impact property.
I hope you enjoy reading this Briefing. If you have any comments, or queries, please do not hesitate to contact me or your usual haysmacintyre adviser.
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