“As the day approaches when George Osborne will once again stand before the Commons to deliver his Budget speech, speculation will grow as to what may or may not be announced.
“In fact, by the time he rises most of the detail will probably been leaked to the extent that there’s little to surprise.
“It’s a difficult balance between offering thoughts on what you’d like to see in the Budget and what is more likely to come through.
“For example it is pretty rare for the subject of Stamp Duty Land Tax not to crop up and most would agree that reform would be on their wish list.
“The continuing use of the bandings causes polarisation of the market at those key price points and a more graduated approach would of course be much fairer.
“However, I have very little expectation that this is a realistic wish and is unlikely to happen.
“The call for an overhaul is one that we’ll no doubt therefore be hearing again.
“I also have my doubts that those calling for an extension of the stamp duty exemption for first-time buyers on purchases up to £250,000 will have good news.
“It has been made clear that the exemption was not deemed successful in stimulating the market, despite being of some help to those that were eligible.
“Newbuy is the new kid on the block and with its launch just this week it looks likely that will be the main focus of any initiatives to address limited mortgage availability.
“What looks far more likely to come up with regard to Stamp Duty is a crackdown on stamp duty avoidance.
“This is always a good win for the Chancellor, saving lost revenue and only dealing a blow to those that have exploited loopholes for their own benefit.
“The other big property related tax that is being mooted is the mansion tax on properties worth more than £2m.
“If there’s any thought of getting rid of the top rate of income tax this could look like a way of generating revenue from the wealthy.
“There will be arguments that this could affect the top end of the market and although it could create some polarisation around that marker it’s unlikely to prove a major dampener.
“I would echo the sentiment from the Council of Mortgage Lenders that there is cause for concern over any suggestion that Support for Mortgage Interest revert to a 39 week waiting period on a maximum mortgage amount of £200,000.
“That would look to be a harsh step in an economy and market that remains fragile to say the least.
“The recent figures from the Department of Work and Pensions following reassessment of those receiving incapacity benefit highlights how those relying on benefits will continue to find things very tough.
“It once again highlights the need for clients to consider their protection needs rather than assume that the State will cover them and those thinking about cutting cover to reduce costs should think again.”
