A Budget for real estate?

Are your pips feeling squeezed?

Today Chancellor Alistair Darling made his second, and one of the most eagerly awaited, Budget statements. A top rate of income tax at 50% ... A diminution in the value of personal allowances ... A punishing restriction on reliefs for pensions contributions ... It is clear from whom Mr Darling is expecting the cash to service and repay the national debt.

With borrowing at record levels and the economy shrinking at its fastest rate in 60 years, it is perhaps not surprising that the Budget offered little by way of significant tax breaks or incentives.

Is this a Budget for real estate? The good news is limited. A re-introduction of 40% first year allowances should soften the blow of forthcoming refurbishments; an extension to trading loss carry-back rules looks helpful but its worth is restricted in the detail; there are welcome announcements on funds rules, in order to embed the UK's role as a centre of excellence for fund and asset management.

Wragge & Co's real estate tax experts take a look at the highlights from this year's Budget for real estate.