Budget 2016: Osborne introduces 0% commercial stamp duty band

Budget 2016: Osborne introduces 0% commercial stamp duty band




In his eighth budget, George Osborne, Chancellor of the Exchequer, has announced a new commercial stamp duty tax that will come into effect at midnight tonight.

Following the residential stamp duty reform which was announced in last year’s budget, he revealed that there will be no stamp duty on commercial properties up to £150,000.

George Osborne said: “The reforms raise £500m a year. And while 9% will pay more; over 90% will see their tax bills cut or stay the same. 
 
“Just over a year ago, I reformed residential stamp duty. We moved from a distortive slab system to a much simpler slice system. 
 
“And as a result, 98% of homebuyers are paying the same or less, and revenues from the expensive properties have risen.
 
“The IMF welcomed the changes and suggest we do the same to commercial property.”
 
Osborne stated that commercial stamp duty will have a zero rate band on commercial purchases up to £150,000.
 
The stamp duty will rise to 2% on properties up to £250,000 and a maximum level of 5% for properties over £250,000.
 
“It’s a big tax cut for small firms,” said Osborne.
 
A new 2% rate for high value leases with a net present value above £5m was also introduced.
 
There are transitional rules for purchasers who have exchanged, but who will not complete contracts before midnight.
 

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