“Budget marks a line in the sand for property investors”

By Bridging Loan Directory 31st October 2024

Alternative Bridging Corporation has said yesterday’s Budget announcement marks a line in the sand for property investors, affirming that it remains committed to delivering tailored financial solutions, regardless of economic conditions.

Whilst speculation of an increase to Capital Gains Tax (CGT) on residential property was unfounded, property investors were hit with an additional 2% surcharge on Stamp Duty Land Tax (SDLT) for additional dwellings, increasing the extra SDLT burden to 5%.

Alternative Bridging suggests this will be a more welcome change for property investors than a CGT hike, adding that the Budget announcement signals a period of greater certainty ahead.

Jonathan Rubins, Director & Chief Commercial Officer, commented:

“At Alternative Bridging, we understand the one thing that markets don’t like is uncertainty and the lead up to this Budget came with more than its fair share of speculation and uncertainty regarding the impact on the property market.

The SDLT surcharge on additional dwellings may have increased but CGT rates on residential property have remained the same.

Whereas CGT exposure is unknown at the outset of a property investment, depending on capital appreciation, SDLT is more straightforward, and the additional cost can sometimes be mitigated by negotiating a lower price.

This Budget sets a clear benchmark for property investors, offering them greater clarity and stability regarding the future taxation framework.

It’s important to remember that we’ve weathered significant challenges such as the global financial crisis and the COVID-19 pandemic, and at Alternative Bridging, we continue to provide flexible lending solutions to meet our clients’ evolving needs.

Our focus remains on providing adaptable financial solutions, whether through short-term bridging finance, development funding, or longer-term solutions like our Alternative Term Loan.

As the property market evolves, we remain committed to offering bespoke solutions tailored to our clients’ needs, ensuring their success in any market environment.”