Budget 2000 Summary
Stamp Duty for Commercial Property
The 2000 Budget brought no move to introduce different rates of stamp duty for residential and commercial property, despite many predictions that a split was imminent. Consequently, businesses will suffer from the government's attempt to dampen down the residential housing boom, by being caught up in the across-the-board increase in stamp duty which sees rates rising to:
• 3 per cent (2.5 per cent last year) for properties valued at between £250,000 -£499,000; and
• 4 per cent (3.5 per cent) for properties valued over £500,000 - in effect, nearly all business premises.
The Chancellor also announced proposals to reduce stamp duty on development of brownfield sites.
Company Cars
From 6 April 2002, company cars will no longer be taxed by reference to business mileage. Instead the taxable benefit will be calculated according to the level of the car's carbon dioxide emissions. The car's list price will still be used as the basis for the calculation, and the benefit will start at 15% of that list price going up to a maximum of 35%, depending on the emission levels. The additional discount for cars over four years old will also cease to exist. Where free fuel is provided to company car drivers, the scale charges have been significantly increased for 2000/2001.
Workplace Nurseries
All childcare provisions in the workplace are to remain free of National Insurance Contributions to encourage employers to provide more childcare facilities. The provision includes employers who contract for places in commercial nurseries, as well as for childminder services and on-site nurseries or childcare vouchers.
Organisations which provide cash to meet or reimburse childcare expenses will need to make National Insurance Contributions. The employer will, though, be able to deduct the cost for tax purposes.
This document is for general guidance and research purposes only, and does not purport to give professional advice. Please check the date at the top of the article; the Workplace Law Network retains historic articles for general research.
