Budget Given ‘Perfect Launchpad’ for Commercial Market’s Future

Posted on 21 March, 2016 by Chris Grigorovsky

The budget has been deemed a success for the commercial property market and a ‘perfect launchpad’ to secure a bright future by Devon based commercial property specialists Charles Darrow.

Budget Given 'Perfect Launchpad' for Commercial Market's Future

The firm claimed that the market has been dealt a significant boost thanks to the budget, with commercial property investors given a lift.

Introducing a zero rate band for commercial stamp duty is one of the main points that Charles Darrow has said will bring optimism for the future.

Commercial stamp duty rates start at zero up to £150,000, with a duty of 2% on the next £100,000, rising to 5% over £250,000.

These reforms have been forecast by the Treasury, ensuring that more than 90% of commercial properties will see tax bills cut or stay the same.

Chancellor George Osborne also announced a business rate tax relief, which will rise from £6,000 to a maximum of £15,000, resulting in 600,000 smaller firms not paying business rates altogether.

Under his new plans, 250,000 firms will end up paying less in business rates and half of all properties will pay no or less business rates.

This means that commercial property investors will see less of a risk if properties with rateable values under £15,000 become vacant, as they would be exempt from paying business rates on the empty property.

Director of Charles Darrow, Paul Heather, said the business rates reform would have a massive impact on the sector’s transformation, adding that it would be a positive impact on the South West.

“This news should encourage residential property investors to look to commercial property investment.”

He goes on to say that Westcountry will feel the benefits, adding: “We are already seeing residential property investors shift to commercial property investment, which can offer more than double the return on investment when compared to residential properties.

“We are also experiencing an influx of property investment coming to the Westcountry in favour of lower property values in the region, which offer much better value for money than property in London and South East and this will only accelerate that process.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme