THE BUD­GET AND PROP­ERTY

Yorkshire Post - Property - - PROPERTY -

Cap­i­tal Gains Tax

Ba­sic rate tax­pay­ers will pay 18 per cent and higher rate tax­pay­ers 28 per cent. The tax al­lowance will re­main at £10,100. But the gain will be added to an in­di­vid­ual’s an­nual in­come mean­ing most peo­ple will pay at 28 per cent.

Hol­i­day Lets

Sec­ond-home own­ers will con­tinue to en­joy gen­er­ous tax breaks on fur­nished hol­i­day home lets. The Chan­cel­lor scrapped Labour’s plans to abol­ish the al­lowances, but rules could be tight­ened up next year.

VAT

VAT will rise from 17.5 to 20 per cent in Jan­uary and will leave fam­i­lies £500 a year worse off. If you’re plan­ning an ex­ten­sion or re­fur­bish­ment now is the time to tackle it to avoid the higher rate.

Stamp Duty

No change to the ex­ist­ing rates at the moment.

These are zero for homes up to £125,000, one per cent for homes be­tween £125,00 and £250,000, three per cent for homes from £250,000 to £500,000 and four per cent for homes over £500,000.

First-time buy­ers will con­tinue to en­joy pay­ing no stamp duty on homes be­low £250,000 un­til March 2012.

The bud­get con­firmed that the new 5 per cent higher rate for prop­er­ties worth over £1m would be in­tro­duced from April next year.

Home­own­ers’ Mort­gage Sup­port.

The govern­ment-backed sup­port is avail­able for those in fi­nan­cial dif­fi­culty and de­lays some of the monthly in­ter­est pay­ments on a mort­gage for up to two years. Plans to re­duce the ref­er­ence mort­gage rate for cal­cu­lat­ing sup­port from 6.08 pc to the Bank of Eng­land av­er­age mort­gage rate 3.9 pc at the moment, may cost vul­ner­a­ble house­holds £130 a month.

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