New tax concessions for property

In his Pre-Budget Report, delivered to the House of Commons on 8th November, the Chancellor announced plans for several changes that will, more or less, benefit those in business. Most are expected to come into effect from April 2001.

As part of a package of measures intended to “regenerate Britain’s towns and cities” and remove development pressure on green filed sites, the Chancellor announced new measures including:

* a stamp duty exemption for all property transactions in the most “disadvantaged communities”

* 100% capital allowances on the conversion of space over shops into flats for letting

* a reduction in the rate of VAT to 5% for residential conversions and for developers renovating and selling houses which have been empty for at least 10 years.