Property tax reliefs listed for scrapping

Property tax reliefs listed for scrapping

9:02 AM, 2nd June 2011, About 13 years ago

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Pay less stamp duty on a home in a ‘disadvantaged area’ is one of the 36 tax reliefs set for scrapping by the Treasury in a clean-up of the rule books.

The proposal to ditch the relief is up for consultation – and the likely result is the benefit for home buyers is expected to go in the next budget.

This relief only applies to contracts entered into before July 10, 2003 that have not completed.

Disadvantaged area relief- which is available in around 2000 UK areas- offers a discount to buyers as the stamp duty threshold for properties in these areas is hoisted to £150,000 rather than £125,000.

The relief gives buyers up to a £250 stamp duty saving on a property.

Flat conversion allowance

Another property tax relief set to go is flat conversion allowance.

This scheme offers 100% capital allowances for the conversion or renovation of empty or underused space above shops and other commercial premises to residential use.

Around 1,000 claims have been made since the relief was made available in 2005.

Other reliefs, perks and allowances included in the consultation include tax benefits for angostura bitters, black beer, late-night taxis for staff and providing luncheon vouchers.

Offer your opinion

“In the budget, we announced the withdrawal of 43 tax reliefs. This will remove over 100 pages of tax legislation, and is a significant reduction in complexity,” said David Gauke, Exchequer Secretary to the Treasury.

“This consultation on the removal of 36 tax reliefs represents the final stage in the work initiated by Office of Tax Simplification to identify, assess and remove obsolete, unnecessary and distortive tax reliefs.”

Consultation on all reliefs is open until August 31.

Click here for the consultation document and details about offering your opinion on abolishing the reliefs

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