One little publicised nugget is the reduced rate of Corporation tax, a further 1% reduction on the main rate was announced, not much you may think. But the main rate of Corporation Tax has now been reduced from 28% to 21% in three years – which in a way is quite radical. I’d be surprised if this did not go down to 20% next year – who knows maybe lower still. This is very competitive compared to our other countries and we may soon reach a tipping point where the UK is seen as a low tax area for companies. New companies setting up in the UK would certainly have a positive impact on UK property.
A New Spring for property? A step forward, maybe, but it will remain a tough market.