A new survey suggests that 70% of UK-based property and construction businesses see the tax system as unhelpful to the industry.
The study, conducted by audit, tax and advisory firm, Crowe Clark Whitehill, reveals that 68% of respondents see Stamp Duty Land Tax as the largest barrier to tax growth. 12% saw Capital Gains Tax as the biggest obstacle.
Future
Providing a yearly outlook for the industry, the report uncovered substantial expectation that residential new builds in London will be worst affected by the downturn in the market.
Almost half of respondents believe redevelopment of brownfield sites could be the future of the London property market.
Are property taxes creating unnecessary barriers?
Overhaul
Stacy Eden, head of property and construction at Crowe, observed: ‘an overhaul of the tax system must be high on the Government’s agenda. A reduction in the tax burden will fuel growth and encourage investment. Cuts to SDLT should be the first step towards this, as we are already seeing the negative impacts of the recent raises on the property market.’[1]
‘Simplification to the planning process to promote efficiency and initiatives to regulate the market are also required. Ensuring that brownfield sites are available for development is crucial-and there is clear demand for this within the industry.’[1]
Concluding, Eden said: ‘decisive action is needed as the lingering uncertainty from Brexit is hampering confidence. We need to ensure long-term international competitive of our market and that Brexit does not reduce investment into real estate.’[1]
[1] http://www.propertyreporter.co.uk/finance/are-property-taxes-the-biggest-burden-to-the-market.html