 Chancellor should have done more to help UK property market says PKF
26 November 2008: The Chancellor did not do enough to help the ailing UK property market in his Pre-Budget Report on Monday, say tax experts at PKF Accountants & business advisers.
It was expected that the Chancellor would use the Pre-Budget Report to introduce radical measures to help 'kick-start' the residential property market. For example, raising the nil-rate threshold of Stamp Duty Land Tax (SDLT) to properties worth up to £1 million, or re-introducing Mortgage Interest Relief at Source (MIRAS) for first time buyers for the first five years.
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 | Marios Gregori, Real Estate Tax Director at PKF said, "While the short term boost for social housing will help to take up some slack, many new residential properties will remain vacant due to the current financial climate. New tax incentives would have helped alleviate the problems currently facing house builders. The Chancellor had a great opportunity to boost the residential property market by introducing tax breaks in the PBR, but unfortunately chose not to.” |
Marios continued, “On the commercial front, the abolition of the empty property rate relief from 1 April 2008 on all properties with a rateable value of more than £2,200, placed an unnecessary burden on businesses which have been badly affected by the credit crunch and the state of the economy. Despite extensive lobbying of Government by property groups and support from numerous MPs, the Chancellor only reintroduced this relief from business rates for empty properties which have a rateable value of less than £15,000. This measure is also only temporary for 2009-10.
"Whilst this increase in the threshold may assist a few organisations next year, the proposals fall well short of what was expected by the property industry and do nothing to assist the majority of businesses facing financial difficulty."
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For further information, or to speak to a tax expert, please contact:
Jane Murray, PR Executive, 020 7065 0135, jane.murray@uk.pkf.com
For general enquiries please contact our switchboard on 0207 065 0000
Notes to Editors:
- PKF is a leading firm of accountants and business advisers with more than 1,800 partners and staff operating in 23 offices in the UK mainland firm, a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk.
- PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Guernsey) Limited is incorporated in Guernsey.
- PKF (UK) LLP is a member of PKF International which is an association of legally independent firms with more than 14,650 people operating in 119 countries around the world.
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