What can we expect in the property sector from the spring budget?

The chancellor is due to deliver the budget on March 3^rd and there have been a number of rumours of what we can expect for the property sector.

The estimated cost of the pandemic by the end of 2021 is estimated to be more than £300 billion so tax rises are expected to feature.

There have been many rumours of a wealth tax (although there have been campaigns for this for years) and it would be a radical departure from previous conservative government policy. The tax would be based on the total value of an individual’s property portfolio disproportionately hitting those with larger properties.

Another of the rumours circulating is a possible rise in capital gains tax. This could negatively impact the market, especially those looking to sell.

The other hot topic of discussion is whether or not the chancellor will extend the Stamp Duty Holiday.

The deadline of March 31^st is fast approaching and has caused a delay in completions due to an increase in applications and lenders requiring more checks and information from clients and brokers.

It’s been reported that the chancellor could be considering a 6 week extension to allow time to clear the backlog of existing applications. Presumably, this extension would only apply to those who have started the process by the March 31^st deadline.

Tax reforms are always controversial and this year that is complicated further with the pandemic and leaving the European Union. It’s highly likely that the property sector will be impacted by the Spring Budget, but we’ll have to wait and see just how much.

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