Not surprisingly, the key issue that everyone is discussing is the UK’s imminent exit from the EU. There is a continuing need for greater clarity over the way forward on Brexit. A very real uncertainty still exists over the medium and longer term impact, which is likely to affect short term investment.
The potential extension of the Brexit timetable avoids the significant risks of a no deal Brexit, but leaves many other issues open. Markets do not like uncertainty and many want to await further developments. The Sterling remains good value for overseas investors, who we should see coming back into the market in the medium and longer term. In particular, there appear to be significant funds in the US, Middle Eastern and Asian markets looking to invest in UK property when the time is right.
At Autumn Budget 2018, the Chancellor announced the introduction of a new capital allowance for new non-residential structures and buildings – a measure designed to respond to a long standing request from business to fill a gap in the available tax reliefs for capital expenditure on commercial property. In his 2019 Spring Statement, he has published (and invited consultation on) secondary legislation reflecting how some elements of the relief have evolved following representations from industry, the property sector and the interested professions.
If you would like to discuss how this may impact your business, please get in touch.
Read our Spring Statement coverage.