Budget 2016: Commercial property has the final word
The region’s property professionals have the final say on this year’s Budget.
Lucinda Hancock of FHP’s Industrial and Office team said: “We are seeing businesses thinking more progressively about future expansion plans and it is encouraging that the stamp duty cuts announced should further stimulate the appetite for commercial property moves, in particular for the small to medium sized sector where there is an improving underlying demand from owner occupiers.”
Jonathon Seddon, director at NG Chartered Surveyors, said: “As a chartered surveyor, I would have welcomed a wholesale overhaul of the Business Rating system. That obviously didn’t happen as it would have been horrifically expensive to implement, but now that the Chancellor has raised the threshold for Small Business Rates Relief from £6,000 to £15,000 with a corresponding increase in the higher rate to £51,000 many business will now either see their liability for the tax either fall away or be reduced markedly.
“SME businesses, such as my own, form a significant proportion of the UK’s economy and they will welcome this move with open arms, along with the planned reduction in Corporation Tax rates. Anything that improves profitability has to be a good thing.”
Partner at Bruton Knowles office in Nottingham, James Bailey, said: ““As part of the Chancellor’s long term economic plans, the biggest tax break announced in today’s Budget was the government’s promise to abolish business rates for 600,000 small businesses by April 2017 and to double the business rate relief permanently. This will allow the relief to increase from £6,000 to £15,000 and from £18,000 to £51,000 for the higher rate.
“Furthermore, the Chancellor outlined plans to reform stamp duty for commercial properties by removing the ‘slab’ structure – just as he has done previously with residential property. After midnight tonight, commercial property purchases up to £150,000 will fall into a zero-rate band, those above £250,000 will be subject to a two per cent rate with those above this will be charged at five per cent – a move that will allow for up to 90 per cent of businesses to have their tax bills cut.
“With corporation tax also falling by 17 per cent by 2020, the most recent budget will come as a welcomed relief to ‘a nation of shopkeepers’ and retailers with the outlined plans to allow small business to save in total £7bn a year.”
Matt Revill of FHP’s Retail and Leisure team said: “We have seen a large increase over the past 12 months in new property purchases on the commercial high street as buyer confidence has continued to grow. This new announcement will further increase not only buyers’ confidence, but essentially their ability to purchase and will positively impact our high streets with smaller businesses being able to thrive.”
