The main headline numbers in the Chancellor’s Budget were largely positive with the UK economy forecast to grow by 2.7% in 2014. For 2015, the forecast is 2.3%. The economy is then forecast to grow by 2.6% in 2016 and 2017; and by 2.5% in 2018.
As expected given the forthcoming elections, most measures announced were positive. On the housing front the Chancellor extended the Help to Buy scheme till 2020. The Government also announced the extension of existing measures to tackle perceived tax avoidance by those acquiring or owning residential property within wrappers.
The Annual Tax on Enveloped Dwellings (ATED) lower-limit will be reduced from £2 million to £500,000 over a transitional period. The related capital gains tax charge for disposals of properties liable to ATED will also be extended. In addition, the 15 per cent SDLT rate that applies to residential properties purchased by certain companies or other vehicles will also be extended to properties purchased for over £500,000.
