After much hype and anticipation, we bring you the relevant snippets regarding property investment from todays UK budget announcement.
After apparently hoping to avoid the same reported fate as North Koreas Finance Minister Pak Nam Gi (Allegedly executed by firing squad in Pyongyang after attempting to revalue the North Korean Won in a bid to bring inflation under control) UK Chancellor Alistair Darling made the following points.
Stamp Duty limit for first-time buyers will be doubled to £250,000 for this year from midnight tonight. This will be funded in an increase in the stamp duty on residential property over £1 million.
Previously, stamp duty was levied on property values above £125,000. It starts at 1 per cent. Prior to todays announcement, it rose to a maximum of 4 per cent for the most expensive homes.
Bank of England inflation target remains unchanged at 2pc.
Inheritance tax threshold will be frozen at £325,000 for a further four years.
The previous plan was to raise the threshold to £350,000.
A New Green Investment Bank is to be created, controlling £2bn of equity. Half the cost will come from Government asset sales, with the rest matched by private investment. The fund will focus on green transport and energy, including offshore wind power, with £60m offered to develop ports hosting manufacturers of offshore wind turbines.
A few countries have already created similar strategies, namely Germany, Australia, France and Spain. Whilst this directly has little immediate impact on the property investment market right now, expect the dovetailing of investment products regarding green energy and power generation with new developments, both commercial and housing projects.
Check back tomorrow for more on how the budget could affect you and your investments, and how any knock-effects might mean some restructuring to your investment property portfolio.
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- Wednesday 24 March 2010