The new Chancellor of the Exchequer, Kwasi Kwarteng, spoke for only 25 minutes today but effectively turned the recent history of British tax policy on its head.
Kwarteng says there are three economic priorities for the new government – Reforming the supply side of economy, responsible public finances and cutting taxes to promote growth.
The most obvious measures impacting the housing market and of interest to investors are:
These changes take effect immediately. But, disappointingly, there appears to be no change to the additional property stamp duty surcharges which exist.
Find out how much Stamp Duty you have to pay with our updated Stamp Duty Calculator here.
But possible good news to investors will be:
There has also been a raft of new tax incentives announced to create a much more private sector-friendly economy, with the emphasis on growth. Specific measures include:
Overall this represents a fundamental shift in the approach to the economy, moving almost 180 degrees away from the direction taken by Conservative and Labour governments over the past 20 years.
Kwarteng says there are three economic priorities for the new government – Reforming the supply side of economy; Responsible public finances;
And cutting taxes to promote growth.
More reforms to processes, especially planning, will be revealed in the coming weeks. This may just be the start of a revolution in the British economy.
View all posts by Vidhur Mehra