Stamp duty overhaul will boost commercial property market

Stamp duty overhaul will boost commercial property market

Stamp duty for buyers of commercial property is to be overhauled under reforms that cut the charges on most transactions but raise them for properties costing more than £1.05m.

The reforms come into effect today. However, transitional arrangements will be put into place for buyers who have exchanged contracts but not completed deals by midnight on Wednesday, 16th March.

The portion of any transaction worth up to £150,000 will incur no stamp duty under the new system, while the amount from £150,000 to £250,000 will be subject to a 2 per cent tax rate and that above £250,000 to a 5 per cent rate. This amounts to a 1% increase on the top rate which was at 4%.

The Government claims that 90% of businesses will pay the same or less.

Greg Bryce, Managing Director of SearchFlow, comments: “Much like we saw with the stamp duty changes for the residential market in 2014, abolishing the slab tax system will help boost a very significant portion of the market. All but 10% of the market is set to benefit, with only properties costing more than £1.05m being hit by a stamp duty increase. However, the impact at the top end of the market is likely to be realised also with concern about a slow-down and dampening of regional growth voiced by many.”

This article was submitted to be published by SearchFlow as part of their advertising agreement with Today’s Conveyancer. The views expressed in this article are those of the submitter and not those of Today’s Conveyancer.

SearchFlow

http://www.searchflow.co.uk

 

 

 

 

www.searchflow.co.uk

SearchFlow is the UK’s largest provider of legal due diligence data for residential and commercial property transactions. Since its formation, it has supported over 5,000,000 instructions and delivered 26,000,000 searches; this equates to around 1 in every 4 property transactions in the UK.

SearchFlow recognises that proactively supporting each client’s journey is vital to delivering the right due diligence insights, searches, data, surveys and insurance for every transaction – whether a single residential property or a complex commercial portfolio. Via its advanced online ordering platform and backed-up by an award-winning customer service team, SearchFlow supports clients in delivering the conveyancing solutions needed to manage due diligence risk and achieve compliance.

By partnering with SearchFlow, property law professionals in the UK can deliver smarter, safer, and faster property transactions to their customers.

Based in Kent, SearchFlow is a Landmark Information Group business, which is part of DMGT plc.

Visit www.searchflow.co.uk for more information or follow via social media for regular updates:

Twitter: https://twitter.com/SearchFlow

LinkedIn: https://www.linkedin.com/company/searchflow/

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