Financial & Legal News

INSIGHT: Snapshot of budget changes for property developers and landlords

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Following the latest budget, we have set out a few of the key points for property developers.

• There will be a cut to mortgage tax relief. The relief which landlords and property developers can claim on mortgage interest will be at the basic rate of tax which is currently 20%.

• New stamp duty rates for commercial property are to be introduced. There will be a zero rate for properties valued at up to £150,000.

• From 17 March 2016, the stamp duty rates on freehold commercial property leasehold premium transactions will apply to the value of the property over each tax band [only]

Rate - % Tax band (Proportion of transaction value up to)

0% £150,000 to £250,000

5% Above £250,000

• New 2% stamp duty rate on leases currently valued net at over £5m.

• Capital gains tax rates are to be reduced from 28% to 20% (for commercial property only)

Don’t forget the stamp duty changes that are due to be implemented from 1 April 2016 on investment properties and second homes. To recap, an extra 3% of stamp duty land tax (SDLT) will be payable on investment properties and second homes over £40,000 from 1 April 2016.

To find out more, contact Karen Piontek on 0161 684 6951 or email


Also in this issue of Insight


Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

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