§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
(a) Why the Treasury has not yet instructed the Inland Revenue to abolish the limit of £150,000 for stamp duty on non-residential property purchases in disadvantaged areas of the United Kingdom, for which approval was given by the European Commission under state aid rules on 21 January; and (b) when such instruction will be issued; and [HL2287]
Whether they intend the abolition of stamp duty on non-residential property in disadvantaged areas of the United Kingdom to continue beyond 31 December 2006; and, if so, when and how they will seek the approval of the European Commission under state aid rules; and [HL2288]
What professional advice they have received on the effect which short-term abolition, until 2006, of stamp duty on non-residential property purchases in disadvantaged areas of the United Kingdom will have on valuations of long-term commercial property investment in those areas. [HL2289]
§ Lord McIntosh of HaringeyThe Chancellor of the Exchequer announced in his Budget that, with effect from midnight last night, this relief is extended to all non-residential property in qualifying areas. This represents a major boost not only to businesses investing in commercial premises but to the 2000 enterprise areas in which this relief is available, along with a wider package of measures which will ensure that these areas now benefit from investment which is long overdue. Individual home-buyers will continue to benefit from the relief on residential property where the consideration does not exceed £150,000.
The extension of the relief to all non-residential property was subject to approval as state aid, which the European Commission has given until the renewal of the relevant guidelines in 2006. This does not preclude the Government from applying for approval to continue beyond 2006. Any such decision will be taken on the basis of evaluation of the effectiveness of the measure in promoting the regeneration of the most deprived areas of the UK.