The Budget 2016: Stamp duty reforms on commercial property to benefit small firms
George Osborne has sought to help Britain’s small businesses by overhauling the stamp duty rates system on commercial property.?
Some 90 per cent of small firms will see tax bills either cut or remain the same as a result of the reforms, with the Treasury calculating that 500mn a year will be raised from the nine per cent of businesses affected by higher stamp duty rates.
For the first time, the chancellor introduced a zero rate band for commercial stamp duty. Small businesses will pay zero per cent on commercial property valued up to 150, 000, two per cent on the next 100, 000 in property value and five per cent over 250, 000. The reforms are due to come into effect from midnight on 16 March.
In his Budget announcement, Osborne said: At the moment, a small firm can pay just 1 more for a property and face a tax bill three times as large. That makes no sense.
if you buy a pub in the Midlands worth, say, 270, 000, you would today pay over 8, 000 in stamp duty. From tomorrow you will pay just 3, 000. it’s a big tax cut for small firms. All in a Budget that backs small business, he added.
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.
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