More than 70% of property and construction businesses based in the UK view the tax system as unfavourable to the industry, according to the latest survey carried out by audit, tax and advisory company, Crowe Clark Whitehill.
The report indicates that 68% of participants believe that Stamp Duty Land Tax is the largest tax barrier to growth for companies, while a further 12% perceive Capital Gains Tax as the biggest barrier.
The report provides a market outlook for the industry over the next 12 months and saw an overwhelming expectation that residential new builds would be the London property most affected by the downturn in the market.
While the housing crisis continues, this prediction increases the potential for the development of brownfield sites, followed by council owned property to manage demand.
In fact, almost half of respondents believe that the redevelopment of brownfield sites will be the future of the London property market.
Commenting on the findings, Stacy Eden, head of property and construction at Crowe, said that an overhaul of the tax system must be high on the agenda for the government as a reduction in the tax burden will fuel growth and encourage investment. She believes that cuts to SDLT should be the first step towards this, as we have already seen the negative impacts of the recent raises on the property market.
Eden continued: “Simplification to the planning process to promote efficiency and initiatives to regulate the market are also required. Ensuring that brownfield sites are available for development is crucial – and there is clear demand for this within the industry.
“Decisive action is needed as the lingering uncertainty from Brexit is hampering confidence. We need to ensure long-term international competitive of our market, and that Brexit does not reduce investment into real estate.”
Crowe Clark Whitehill is a national audit, tax and advisory firm and the UK member of Crowe Horwath International, one of the largest global professional service organisations with 171 independent member firms operating from 671 offices around the world.