UK - A new tax on the property industry introduced this week will have a "serious impact" on schemes, Credit Suisse Asset Management warns.
The stamp duty land tax, which came into effect on Monday, is payable on rental agreements and will “dramatically increase” the duty paid by tenants.
All commercial properties valued over £150,000 will be taxed, with longer leaseholders incurring greater charges.
CSAM head of UK property Glenn Newson said tenants would have to pass the increase in costs on to customers if they were to maintain their trading margin.
This, he believed, would hit corporate profitability, potentially affecting shareholders throughout the equity market.
He added: “Investors could be hit if landlords hold a tenant’s total cost of occupation at a fixed level to maintain existing business operating margins.
“In this case, to make savings, landlords would have to squeeze down rental prices, which would have consequences for investment values and development appraisals.”
Life expectancy in the UK saw no improvement between 2015 and 2017 as the number of people aged over 90 hit a record high, latest Office for National Statistics (ONS) data reveals.
Self-administered pension funds spent £14bn on payments to pensioners in Q2 2018, but only received £11.4bn of contributions (net of refunds), latest Office for National Statistics (ONS) data reveals.
The Pensions and Lifetime Savings Association (PLSA) has named the 17 members of its inaugural policy board after a competitive application process with 60 candidates.