Last Updated: 23/03/2016
Last week George Osborne, the Chancellor of the exchequer announced the Budget, confirming that the proposed increase of 3% stamp levy for property investors and those people buying a second property would still go ahead as from next month. Osborne also announced that large property investors, those with portfolios of 15 or more properties would also not be exempt from the increase in Stamp Duty.
Commercial property investors will have to pay 0% for properties worth up to £150,000, 2% on the next £100,000 and 5% on properties above £250,000, in a move to help smaller firms.
There was good news for savers as Osborne revealed the details of a new lifetime ISA available as from next year, where anyone under the age of 40 years of age can pay into and open up. Savers will be able to invest up to £4,000 per year and they will receive a 25% bonus from the Government, which means that every £4 saved the Government will pay £1. Savers will be able to pay into this ISA up until the age of 50, and the money can be either used for retirement or to buy a first home. Savers will also be able to invest up to £20,000 in an ISA as from next April, where as at the moment the maximum is currently £15,240.
There were also some changes made to Capital gains tax, as from the 6 April this year, the higher rate of capital gains will be cut from 28% to 20% and the basic rate will be cut from 18% to 10%. Residential property will remain the same, and it’s good to remember that capital gains does not apply to your primary residence.