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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Whiteskifreak Surrey
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Sign Up18:54 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by Jamie Moodie at 22/11/2017 - 18:29
Of course, it goes without saying. If someone is not a FTB, for example had a studio, sold it and after some time buys again, will not qualify for zero stamp duty (I think). That will be the base how to charge BTL.
TheMaluka
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Sign Up20:53 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by Jilly G at 22/11/2017 - 15:44
Oh no it's not. Make sure your tenancy says that whenever the tenant moves out the tenancy does not end until midnight and make sure that it is a contractual periodic tenancy then the problem is solved. Had many a run in with my council over just this point and have never paid.
TheMaluka
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Sign Up20:57 PM, 22nd November 2017, About 7 years ago
Reply to the comment left by David Lawrenson at 22/11/2017 - 16:13
Council tax is payable by the person who has possession at midnight. A landlord has to make sure that this is the tenant.
David Lawrenson
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Sign Up9:28 AM, 23rd November 2017, About 7 years ago
Reply to the comment left by David Price at 22/11/2017 - 20:53
Good advice
Jilly G
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Sign Up10:06 AM, 23rd November 2017, About 7 years ago
Reply to the comment left by David Price at 22/11/2017 - 20:53
Many thanks David. Will ensure my ASTs state this.
Richard U
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Sign Up12:33 PM, 23rd November 2017, About 7 years ago
I for one look forward to seeing how the government get the banks to change mortgage conditions on their existing lending to allow longer tenancies. Or perhaps it will only be unmortgaged properties that will benefit from the longer tenancy incentives? In which case there is no light at the end of the tunnel for section 24.
If however, the government do find a compelling incentive - I wonder what the response will be from my house-share tenants that in order to get a better price they will have to sign-up to the security of a longer-term contract.
Whiteskifreak Surrey
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Sign Up13:33 PM, 23rd November 2017, About 7 years ago
Reply to the comment left by Richard U at 23/11/2017 - 12:33
I agree that if an incentive will come up somehow, it will be for their cronies, unmortgaged Landlords, who are of course not affected by Section 24. I also wonder what will happen with students' lets... Students do not want to sign up to more than a year, generally it is 50 weeks, with two for repairs and refurbishments. No chances for any incentives, so again they will be paying through the nose, as fewer LLs will decide to rent to them... Abolishing S24 is the only way to incentivise LLs.
TheMaluka
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Sign Up16:00 PM, 24th November 2017, About 7 years ago
For sale, was £295,000, now £300,000. Thank you Mr Hammond you have just made an extra few percent for current owners. I am also pleased to see you have wiped £72 billion of the national debt by redefining Housing Associations as private companies.
Now please excuse me I have a few deckchairs to move. . . . .
TheMaluka
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Sign Up16:02 PM, 24th November 2017, About 7 years ago
Reply to the comment left by Jilly G at 23/11/2017 - 10:06
https://www.property118.com/landlord-reactions-2017-autumn-budget/comment-page-4/#
Contact me through 118 and I will give you the wording to put in your AST.
Jim
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Sign Up13:09 PM, 26th November 2017, About 7 years ago
The main header article to this thread reads that the basic rate of tax has increased to £46,300 and I thought I had heard that figure in the budget but the government websites say that the rate has increased to £34,500 ie an extra £1,000
Where am I going wrong!