Stamp duty for commercial property in the UK has changed

17 Mar 2016 entered into force changes in the scale of Stamp duty taxation of commercial property in the UK.

Investors and businesses are buying small objects of real estate in London and other parts of the UK, even will be able to experience the benefit of paying less tax or do not pay it. Owners of large commercial properties will pay more taxes.

According to the new scale, the rate of Stamp duty for buyers of commercial property in the UK, buying on the basis of the right of ownership of the Freehold will be 0% if the transaction price is less than £150000 at the cost of the facility from £150001 to £250000, you will have to pay 2% , and 5% if the facility will cost more than £250000. The new scale is arranged in such a way that will benefit from the changes those buyers who buy objects cheaper £1.05 million.

Stamp duty for buying a commercial property on the terms of the Leasehold has also changed and will be 2% for customers who purchase leasing commercial property is more expensive than £5 million

Opinions about the impact of these changes on the real estate market of great Britain and the economy of the United Kingdom was divided.

According to Melanie Leech, of the British Association of real Estate, they expect a broad distribution of the financial flows of investors outside of London to other UK regions. Property in London is now at the peak of their prices and experts expect a wave effect across the UK. Now obviously, this process will go slower than expected.

Mark Tay, Executive Director of the tax Department of Catax Solutions, on the contrary, sees in the changes a positive – he believes that substantial relief for the low-cost sector will lead to a surge in demand for commercial real estate for months, maybe years. However, as noted by mark, we must not forget that if a company or individual will gain too much real estate exemption threshold may be exceeded and such investor to lose benefits forever.

® Maxim Savitsky G. 17.03.2016

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