Individuals

Stamp duty land tax (SDLT) nil rate band expanded to GBP 250,000 from GBP 125,000. So no stamp duty land tax is payable if the property you buy costs less than GBP 250,000.

If you are a first time buyer, then the Stamp duty land tax (SDLT) threshold increased from GBP 300,000 to GBP 450,000.

These are positives to make the initial purchase of a house 🏠 cheaper. However, the interest rates are going up not only in the UK but globally, would make house purchase cost more expensive.  Furthermore, rising borrowing costs, all things being equal would lead to a drop in property prices. Hence, house buyers who take advantage of the reduction in cost of purchasing a house, may have an unintended consequence of the drop in price of the house. Hence, lender’s would be requiring higher deposits.  This might not happen as the Financial market have given the GBP a beating against the US Dollar, which would lure foreign investors to invest in UK Real Estate 🤔.

I would have expected that full borrowing costs would be made available against individual (buy to let)  rental income, as before. Currently, individual rental property owners can only claim 20% of interest cost, as credit against tax payable. This could be considered discrimination against individual ownership of rental property by individuals as opposed to  rental property owned by companies, which have full borrowing cost allowable for tax purposes.

Companies

The additional 3% stamp duty land tax remains payable.

However, the announced increase of the corporation tax rate from 19% to 25% from 6th April 2023 was reversed.

The dividend tax rate on basic band was reduced from 8.75% to 7.5%. This gives shareholders more cash in hand.

There are investment zones with significant tax incentives. Investment Zones will comprise both Commercial , industrial and residential development in the designated area. This will lead to a more buoyant real estate sector.

Things to look forward

The free ports and investment Zones, regulations and tax incentives which will come with them. We look forward to the tax measures (time limited) for companies . It has been prefential free trade areas or zones which have made cities/states like Dubai (UAE), Singapore 🇸🇬 and Mauritius 🇲🇺 trading giants. The United Kingdom has historically grown to be a global power due to trade, which it needed to protect using its Navy, which enabled it to become a great Global power.

The eight English Freeport locations announced are:

• East Midlands Airport 
• Felixstowe & Harwich
• Humber Region
• Liverpool City Region
• Plymouth & South Devon
• Solent
• Teesside
• Thames

Another thing to develop and strengthen is greater trade and finance between Commonwealth countries. The ties of the British Crown with the Commonwealth was emphasised during the the Funeral of her Majesty Queen Elizabeth II. The free trade agreements with Commonwealth countries should be aggregated into a Commonwealth wide Free Trade Common market.

https://www.gov.uk/government/news/uk-kenya-economic-partnership-agreement-enters-into-force

These Freeports and Investment zones will spur real estate investment and create opportunities for commercial, retail, industrial, residential development. In Birmingham the investment zone is going to be in the Solihull area.

We remain positive and optimistic about growth and opportunity for trade, investment and finance in the UK. Foreign investors should take advantage of the weak Sterling Pound – GBP against the US Dollar and invest in the UK. As growth will be realised in the mid-term, and the GBP will strengthen significantly against the US Dollar and other major currency in 2-3 years.

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