Please find below a summary of key points from Chancellor Rishi Sunak’s Autumn budget:
Capital Gains Tax (CGT) – Residential Property
Reporting and payment update
The deadline for UK residents selling UK residential property to report and pay any capital gains tax (CGT) will be extended from 30 days to 60 days after the completion date of the disposal. The time limit will also increase from 30 to 60 days for non-UK residents disposing of property in the UK.
The measure was recommended by the Office of Tax Simplification (OTS) and will ensure that taxpayers have sufficient time to report and pay CGT.
When mixed-use property is disposed of by UK residents, the legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.
This measure will be implemented in the Finance Bill 2022 and will have effect for disposals that complete on or after 27 October 2021.
Business Rates – Commercial Property
Exemptions and relief to support net zero targets
The government intends to introduce targeted business rates exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, such as rooftop solar panels, battery storage used with renewables and electric vehicle charging points. These exemptions will apply from 1 April 2023 until 31 March 2035.
A 100% relief will also be provided for eligible low-carbon heat networks that have their own rates bill.
Temporary relief for retail, hospitality and leisure businesses
In March 2020, the government announced a 12-month business rates holiday for eligible retail, hospitality and leisure businesses from 1 April 2020. The Spring Budget 2021 extended this relief and introduced a 66% relief for the period from 1 July 2021 to 31 March 2021, subject to certain caps.
In view of the continued disruption caused by COVID-19, the government has announced a further temporary business rates relief for eligible retail, hospitality and leisure properties in England for 2022-23. Eligible properties will receive 50% relief, up to cap of £110,000 per business. This relief will apply on top of the multiplier freeze.
For further assistance on Commercial Property related issues, please contact a member of our Commercial Property team.