Gordon Brown’s most recent Budgets have spelled change for the property market. The mixed bag of measures they have introduced have affected the ways in which property transactions are structured, largely through a raft of tax changes.
The most recent Budget was no different. Although the Government did not increase the rate of stamp duty land tax (SDLT) above the existing 4% rate, and committed itself to looking at introducing real estate investment trusts (REITs) next year, this is tempered by the introduction of more red tape in the form of disclosure rules for SDLT, the withdrawal of SDLT relief for commercial property in disadvantaged areas and the closure of various tax loopholes which previously allowed taxpayers to reduce their liability when buying properties.
