13:43 PM, 22nd November 2017, About 7 years ago 41
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The key headlines affecting UK landlords are:-
RESTRICTIONS ON FINANCE COST RELIEF
Disappointingly, there where no amendments suggested to the legislation which restricts finance cost relief for private landlords under Section 24 of the Finance (No.2) Act 2015, which remains in place and will continue to be phased in until the 2020/21 tax year, at which time no finance costs will be able to be offset against rental income. The 20% tax credit for disallowed finance costs was also unchanged and there was no extension of the restrictions to Limited companies. There were no changes to incorporation relief or SDLT relief for partnership incorporation. Whether this will result in more landlords incorporating their businesses remains to be seen.
Show Book a Tax Planning ConsultationPERSONAL ALLOWANCES INCREASED FROM APRIL 2018
Nil rate income tax band to increase to £11,850
Basic rate income tax band increased to £46,300
INDEXATION ALLOWANCE FOR COMPANIES
This will be frozen from January 2018.
CORPORATION TAX
The trend of reducing corporation tax is confirmed. It was 20% last year, 19% this year and is scheduled to reduce to 18% next year and 17% the year after. No change in this regard.
EMPTY PROPERTIES
Councils to be granted the right to charge a 100% Council Tax premium on empty properties.
STAMP DUTY LAND TAX
SDLT abolished for all First Time Buyer purchases up to £300,000
FTB purchases up to £500,000 maximum will also be free of SDLT for the first £300,000.
HOUSE BUILDING
£44 billion in government support, including loan guarantees announced to target building 300,000 new homes a year by the mid 2020s.
These funds include an extra £2.7bn to more than double the Housing Infrastructure Fund.
Compulsory purchase of land banked by developers for financial reasons
A review of the gap between planning permissions being granted and housing building starting. It will report for next Spring’s economic statement.
The Chancellor said: “Solving the housing challenge takes more than money.” He wants to look at planning reform focusing on the urban areas where “people want to live and where most jobs are created. In particular, building high quality, high density homes in city centres and around transport hubs.”
5 new garden towns to be announced.
LONGER TERM TENANCIES CONSULTATION
The Chancellor announced a consultation in regards to encouraging landlords to offer longer term tenancies. Wouldn’t it be great if we could persuade Government to make s24 concessions for landlords who offer a 5 year Deed of Assurance? Note that Deed of Assurance doesn’t affect mortgage lending but longer term tenancies does.
UNIVERSAL CREDIT CHANGES
Government to remove the 7 day waiting period at the start of a new UC claim
One month’s payment advance will be possible for cases of hardship after a minimum of 5 days.
VAT THRESHOLD
Despite threats to bring this down the threshold of when trading businesses, such as letting agents, have to register for VAT will not change for 2 years at £85,000.
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steve p
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Sign Up13:50 PM, 22nd November 2017, About 7 years ago
The councils being able to charge 200% council tax when a property is empty is basically another tax on landlords. I always tend to leave 2 weeks between tenancies as your never sure how the property will be left so allows you to do repairs and redecoration. This seems like a penalty on good landlords... Hopefully it will only apply when a property is empty for a certain period but I fear councils will take any opportunity to grab money. Personally I reduced the time between tenancies from 3 weeks to 2 weeks, if this comes in I think I will need to reduce it to 1 week and will just have to do the repairs and redecoration I can get done in that week.
James Barnes
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Sign Up13:58 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by steve p at 22/11/2017 - 13:50
As far as I'm aware Long Term Empty Council Tax Premium (previously 150%) has only ever been applied to properties left empty for 2 years or more.
Mark Alexander - Founder of Property118
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Sign Up14:00 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by steve p at 22/11/2017 - 13:50
I agree, 200% Council Tax on empty property is yet another stealth tax on landlords. We all have voids, if only during refurb periods. Let's hope the two year rule still applies.
steve p
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Sign Up14:03 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by James Barnes at 22/11/2017 - 13:58
He didnt say long term empty properties, he just said empty properties so potentially we could end up paying 200% council tax on day 1. It will depend on your council how this is implemented.
Simon Hall
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Sign Up14:06 PM, 22nd November 2017, About 7 years ago
I was rather taken aback that Chancellor stated that "he will incentivise those landlords who offer 12 months tenancies but remained muted on further elaboration on this matter. Having looked at RLA site it now transpires that he will seek further consultation as to how to incentivise the landlords.
Gary Dully
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Sign Up14:07 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by steve p at 22/11/2017 - 14:03
In Liverpool we get battered from day 1, it’s the same in Flintshire so it’s a postcode lottery.
I think I might end up being a rough sleeper just in time for the next phase of Section 24.
steve p
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Sign Up14:12 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by Gary Dully at 22/11/2017 - 14:07
Do you get charged 200% council tax, in my area I get charged 100% from day one but this will be a potential 100% premium so double council tax.
Neil Patterson
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Sign Up14:22 PM, 22nd November 2017, About 7 years ago
I am very disappointed with some vague indirect hope that 300,000 properties be built per year sometime in the next 7-8 years. This shows no ambition or commitment. We need those houses now to prevent more resentment of landlords.
How about just borrowing the money to directly build homes that are an asset and can just be added to the balance sheet???
Phil Atkinson
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Sign Up14:24 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by steve p at 22/11/2017 - 13:50
Empty properties are typically defined as vacant for 6 months. On top of this, some local councils don't impose the premium unless the property has been empty for much longer (up to 2 years). It's like a precursor to an enforced improvement notice to try to get the owner's attention and shouldn't affect normal void periods between tenancies.
NW Landlord
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Sign Up14:29 PM, 22nd November 2017, About 7 years ago
The empty property Council Tax makes my blood boil and if you don't pay u have the balifs round another reason to be ashamed to be British