So we now have a new government, a new type of government! All great, we hope, for the economy and for Britain, but how does the new agreements made between The Conservatives and The Liberal Democrats effect us, the property investor?
So we now have a new government, a new type of government! All great, we hope, for the economy and for Britain, but how does the new agreements made between The Conservatives and The Liberal Democrats affect us, the property investor? Having read through the agreement published on the conservatives website (Coaliation Agreement). I believe there are a few areas that we need to be conscious off.
The agreements states the intention of:
“taxing non-business capital gains at rates similar
or close to those applied to income, with generous exemptions for entrepreneurial business
As yet what is termed an “entrepreneurial business” is unclear. The National Landlords Assocaition (NLA) are clear in stating that sale of residential property should be included in the exemptions to avoid a significant disincentive for landlords: CGT generous exemptions must include Landlords
2. HIPS and EPCs:
The agreement thankfully includes the:
“Retention of energy performance certificates while scrapping HIPs.
The scrapping of the Home Information Packs (HIPs) will be welcome by nearly all involved in house purchases, apart from probably those providing them, as they have not been welcomed by buyers, sellers or estate agents. The big uncertainty is when this will happen and what impact on the housing market any delay will have, surely people could look at delaying selling their house awaiting HIPs to be scrapped.
Keeping the EPCs is a good thing as these are generally seen as a good step for environmental issues. Zoopla have a more detailed analysis: CONFIRMATION: HIPs to be scrapped
There maybe others that I have missed so please do comment with any more areas that could effect us all.
Unfortunately we will have to wait until to fully know how we as property investors are effected and what impact it will have on the housing market on at least:
- the final coalition Agreement is released with full policy details
- the budget that David Cameron has promised us within 50 days of signing the agreement