High streets – High streets and town centres are crucial parts of
communities and local economies, but the government recognises
the challenges they face from changing consumer behaviour and is
taking action to help them to evolve. High street businesses are
already benefitting from recent reforms and reductions to
business rates announced since Budget 2016 worth more than £12
billion over the next five years. In the Budget the government is going
further through Our Plan for the High Street. To provide upfront
support through the business rates system, the government is
cutting bills by one-third for retail properties with a rateable
value below £51,000, benefiting up to 90% of retail properties,
for 2 years from April 2019, subject to state aid
limits.(44)
In the longer term, to support a sustainable transformation of
high streets, the Plan includes a £675 million Future High
Streets Fund, planning reform, a High Streets Task Force to
support local leadership, and funding to strengthen community
assets, including the restoration of historic buildings on high
streets.
Business rates public lavatories relief – The government will
introduce 100% business rates relief for all public lavatories to
help keep these important local amenities open. (47)
Business rates local newspaper discount – The government will
continue the £1,500 business rates discount for office space
occupied by local newspapers in 2019-20.
Local authorities will be fully compensated for the loss of
income as a result of these business rates measures.
Business rates treatment of self-catering and holiday let
accommodation – There is concern that some owners of
properties that are not genuine businesses may seek to reduce
their tax liability by falsely declaring that the property is
available for let. To ensure that second properties are subject
to the appropriate tax, the government will consult on the
criteria under which self-catering and holiday lets become
chargeable to business rates rather than council tax.
Stamp Duty Land Tax (SDLT) and first-time buyers relief –
The government will extend first-time buyers relief in England
and Northern Ireland so that all qualifying shared ownership
property purchasers can benefit, whether or not the purchaser
elects to pay SDLT on the market value of the
property. This change will apply to relevant transactions with an
effective date on or after 29 October 2018, and will also be
backdated to 22 November 2017 so that those eligible who have not
previously claimed first-time buyers relief will be able to amend
their return to claim a refund. (37)
Consultation on SDLT charge for non-residents –
The government will publish a consultation in January 2019 on
a SDLT surcharge of 1% for
non-residents buying residential property in England and Northern
Ireland.
Capital gains tax – To better target private residence relief at
owner occupiers, from April 2020 the government will reform
lettings relief so that it only applies in circumstances where
the owner of the property is in shared occupancy with the tenant.
The final period exemption will also be reduced from 18 months to
9 months. The government will consult on these changes. There
will be no changes to the 36 months final period exemption
available to disabled people or those in a care home. (57)
