From what I've gleaned from the budget (via Crowe Clark Whitehill) the main measures affecting the property and construction sectors are:
General changes
General changes
- An accelerated cut in the main rate of corporation tax to 24% from 1 April 2012 with further reductions of 1% per year to give a rate of 22% by April 2014. The Chancellor signalled his longer term aim of a main rate of 20% in line with the basic rate of income tax.
- Income tax rates and the capital gains tax annual exemption remain frozen for 2012/13 at their current levels. The tax-free personal allowance rises to £8,105 for 2012/13 and to £9,205 from 2013/14.
- Top rate income tax reduces to 45% from April 2013
- 15% SDLT rate on residential properties worth more than £2m acquired through certain corporate vehicles
- There will be a consultation process on an annual charge on existing residential properties worth more than £2m held through certain corporate vehicles, due to come into effect in 2013
- There will be a consultation process on introducing capital gains tax from 2013 on residential property owned by non UK companies
- A new 7% SDLT rate on residential properties worth more than £2m
- Rules to stop abuse of sub sale relief
- National Planning Policy Framework coming into force to refocus planning policy to better support growth, favour sustainable development and localise choice on the use of previously developed land.
- Introduction of measures to deregulate and simplify planning system, reducing information requirements, making change of use easier – for implementation by April 2013
- Consultation to allow reconsideration of stalled planning applications
- Development of national roads strategy
- Further investment in road and rail infrastructure
- Launch of New Buy to make 95% mortgages available for people to buy a new home
- Reinvigorated Right to Buy for two million tenants in council housing, with a single discount cap of £75,000 and with the proceeds of sale used to finance new builds on a one to one basis
- Enhancement of plans to deliver over 15,000 new homes by providing support to construction firms in need of development finance
- Accelerating the release of public sector land to provide capacity to build over 100,000 new homes
- Taking forward pilots of auctions of public sector land with the aim of having two sites ready for market by the end of 2012
- Consultation on potential role that a social housing Real Estate Investment Trust could play to support investment in social housing
- A number of new Enterprise Zones announced with enhanced capital allowance
- New rules will be introduced which could restrict the availability of capital allowances on fixtures
- Amendments to VAT in respect of approved alterations to listed buildings
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