Budget Press Release
Market - March 16th 2016
George Osbourne today unveiled his eighth budget as Chancellor detailing changes to stamp duty and business rates relief.
Whilst the exact details of the business rates changes are not yet clear, he has suggested that rates bill cuts will be given to occupiers of premises with a rateable value below £15,000 as opposed to the current scheme offering exemption to businesses occupying premises with a rateable value of less than £6,000. It was also stated that yearly adjustments to business rates will be linked to a lower inflation measure, the retail price index, as opposed to the currently used consumer price index.
The changes to commercial stamp duty are similar to those previously introduced to residential stamp duty. As opposed to the previous system where a £1 increase could lead to a higher tax threshold across the entire purchase price, the new system will introduce banded rates as follows:
0% up to £150,000
2% for the next £100,000 up to £250,000
5% for the remainder of the purchase price above £250,000
This also includes a change to stamp duty on leases with a new 2% rate on leases that have a net present value above £5,000,000.
The chancellor estimates only 9% will see bills rise as a result, but, stated that the new system will be fairer for all.