Budget Comment

·         The property market seems to have escaped the worst of Osborne’s budget.

·         The 28% rate of Capital Gains Tax will be paid by higher rate taxpayers with combined income and gains of more than £54,975.

·         This should not unduly affect investment in land as a means of having wealth in a secure asset.

·         More land should become available in the next few weeks from those who were waiting for the Chancellors plans.

·         Small rural based family businesses should also benefit from the entrepreneurs relief of 10% for the first £5 million.

·         Tax advantages on holiday lets, which are subject to certain conditions, have been reinstated enabling owners to offset losses against other income.  We may see wealthy professionals investing in second homes benefiting the economies of rural areas.

·         It is to be noted that the increase of stamp duty to 5% for £1 million + properties from next year announced in the last Labour budget will remain.

·         Also the Bank of England will have powers to restrict bank lending when it takes over much of the role of the FSA in 2012.

Value of Rural areas to the Scottish Economy

·         A study commissioned by The Scottish Government has found that a net total of £65 million is spent by tourists on wildlife trips generating 2760 jobs in Scotland.

·         1.12 million trips were made every year to or within Scotland with the main aim of viewing wildlife. This form of tourism appealed greatly to UK-based visitors and Scots themselves, accounting for 56 per cent of trips.

·         These statistics will be a consideration for land owners who encourage wildlife tourism and property owners who wish to take advantage of the tourist trade through holiday lets or bed and breakfast businesses.

Scottish & UK governments working together

·         The   Defra ministers in the UK government and Scottish Government’s Rural affairs and Environmental department meet today to discuss how they can work together on rural, agricultural and fisheries issues.

·         It was recently agreed Scottish Ministers and will have a stronger role during European Council meetings to better reflect the interests the Scottish farming and fishery industries and Scottish communities in the European decision making and policy process.

·         Fishing farming and food are areas where European Councils make decisions affecting Scottish property owners and it is important that they are well represented.

Saint Property

·         Saint Property offers advice to buyers looking to purchase property in Scotland.

·         We cover both residential & rural property ensuring a property purchase decision is made with sound advice.

·         We offer a pre-property purchase consultancy service for those who have found a property but need a second on opinion. We evaluate all aspects of a property on the purchaser’s behalf and report with an unbiased view of our findings.

·         Please forward this to anyone who may be interested in the Scottish property market.

·         Contact us for advice on +44 (0)131 478 4533 if you are considering purchasing a Scottish Property.

Tags: Budget, Capital Gains Tax, Saint Property, The Scottish Government