Budget 2021 – Landlord Reactions

Reply to the comment left by Simon Lever at 31/10/2021 - 16:37Many thanks for your reply,
The following was forwarded by my accountant;-
Who is likely to be affected
Companies and unincorporated associations that pay Corporation Tax.
General description of the measure
The measure sets the charge to Corporation Tax and sets the main rate at 19% for the Financial Year beginning 1 April 2022 and also sets the charge to CT for the Financial Year beginning 1 April 2023.
This measure also announces that from 1 April 2023, the Corporation Tax main rate for non-ring fenced profits will be increased to 25% applying to profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay Corporation Tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
I'm now wondering if there is any news concerning the "Marginal Relief" and how they will apply the "Gradual Increase" across the gap between £50,000 and £250,000?

Since posting the above I have read elsewhere that it was also in yesterday's Financial Times (to which I don't have a subscription) so I am surprised it has not been reported here before now - unless it has and I have missed it. Perhaps as a non-event no-one thought it worth mentioning but I consider it a worrying indication of the direction of travel. Obviously, it wouldn't apply to the government's Build to Rent cronies just to the individual landlord who saves up to purchase one at a time.

Reply to the comment left by Whiteskifreak Surrey at 01/11/2021 - 10:43
I think that an increase in SDLT makes a lot of sense. Shame that they pulled it.

Reply to the comment left by neilt at 01/11/2021 - 12:02
Care to elaborate, please?

Of course. Firstly it must be common logic to expect taxes to rise after the Kung Flu epidemic. I've conditioned my thinking and planning for this.
Having been a Landlord since the 1970's I've been through it all. With interest rates running as high as 15%, there was no profit for years. My income and property maintenance cash mainly came from re-mortgaging.
Of course, as interest rates came down and rent went up, things improved somewhat.
Although I knew this all along it still shocked me that day when my last loan was paid off. That's where the real money is. It's a simple equation. If you buy 10 houses at half a mill each, in twenty or so years you'll have 5 million PLUS inflation!
I'm so glad that I looked at the long term and didn't quibble when taxes went up. After all, infrastructure and health care have to be paid for.
Keep your head above water and look at the end game.
I hope that answers your question

Reply to the comment left by neilt at 01/11/2021 - 12:37
Not particularly, but thank you.
With Boris the landlords' enemy we will certainly be leaving the BTL market, along with a lot of others I suspect (reading a lot of comments on this portal).

Reply to the comment left by neilt at 01/11/2021 - 17:18
How terribly rude!
We have been self-managing quite successfully 5 BTL properties in the last 15 years.
Stopped expanding when the the worst UK Chancellor Osborne came up with his genius ideas.
Just because I despise the current No. 10 occupier you call me a chancer.
Highly offensive without knowing a single fact about me.
Ypur comment sadly does not stand up to the usual P118 high standards.