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Legal Updates

Budget 2016 – Key property announcements in brief

07 April 2016 #Commercial Real Estate

Stamp Duty Land Tax

From 17 March 2016 SDLT on commercial properties was brought in line with the residential system, whereby, the SDLT will now be charged at a variety of rates according to the portion of the total consideration that falls within each of the respective bands. In effect this means that all properties with non-rent consideration over £1.05 million will now be subject to greater SDLT than before.

The government has also introduced a new 2% band for rents with a net present value over £5 million.

Capital Gains Tax

Higher rate CGT is being cut from 28% to 20% and the basic rate from 18% to 10% as from and including 6 April 2016.

The old rate will remain on residential property gains and the private residence relief will remain so that an individual’s main residence will not attract CGT.

Insurance Premium Tax

This will be going up from 9.5% to 10% with the extra revenue going to improve the national flood defences.

Offshore property developers

The government is to create new legislation to target offshore property structures to ensure they cannot be used to avoid tax.

Business Rates

Small Business Rate Relief is to be increased to 100% meaning small businesses will get full relief on properties with a rateable value of £12,000 and below.

A shift in the rateable value threshold (to £51,000) from 1 April 2017 is also set to take a number of properties out of the higher rate.

Consultation is also ongoing on many levels with the government’s particular aim to improve the administration of the rates process.

Enterprise Zones

New zones will be created in Cornwall, Dudley, Loughborough and Leicester with an extension of the Sheffield City Region. The zones will offer enhanced capital allowances.

Land Registry Privatisation

This is now a real possibility since initially being shelved during the coalition government. The sale will be a revenue raiser for the Government and it remains to be seen how it will affect the operation of the Land Registry.

Clarkslegal, specialist Real Estate lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Real Estate matter please contact Clarkslegal's real estate team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Simon Ralphs

Simon Ralphs

T: 020 7539 8049
M: 0779 900 7323


Commercial Real Estate team
+44 (0)118 958 5321