On 15 March, the UK government provided its latest update on the UK's public finances, announcing various planned tax changes. Some of these – like the implementation of the OECD's Pillar 2 – were basically held over from last autumn (oh, what fun we had then), but there were new measures too. Those relevant to real estate included changes to the UK's capital allowance regime with companies able to get 100% tax relief for capex on plant and machinery for the next three years at least. There are also some technical changes proposed to the recent qualifying asset holding company rules and to the corporate interest restriction (though we have to wait until the Finance Bill is published later this week for the detail). In addition, the government confirmed that it no longer intended to tax sovereign immune investors in UK real estate having "carefully considered all the responses" to last year's surprise consultation.
For a more comprehensive (real estate focused) summary, go to the Budget analysis produced by our friends at the British Property Federation.
