The Autumn Budget 2017: A Summary for Landlords
Last week the Autumn 2017 budget was announced. While for some, changes published by the Chancellor offer minimal disruption, for the likes of business owners and landlords, it can serve to make the palms sweaty.
But, the good news is, the Chancellor refrained from introducing any further tax changes on landlords so if you’re in the buy-to-let biz, you will be able to rest a little easier.
Property-based headaches are something the government has regularly imposed in recent Budgets, those including the reduction in the tax relief so that they can claim and a three percent stamp duty surcharge.
With the pleasant news that additional tax charges have been frozen, for now, we're going to give you a landlords’ rundown of the Autumn 2017 Budget, so you're up to speed with everything you need to know.
The Budget: An overview for landlords
Without further ado, here's our Rockett Home Rentals summary (the elements of it that we think might affect you) of the Budget for your reference:
Income tax: The higher rate threshold will climb from £45,000 to £46,350, and personal allowance will also rise from £11,500 to £11,850.
Empty homes premium: Local authorities will gain the power to increase council tax premiums from 50 to 100% on vacant homes.
Capital Gains Tax: The publicised 30-day payment window for capital gains will now be deferred until April 2020.
Rent-a-room relief: In another attempt to encourage long-term tenancies, the government will look deeper into how rent-a-room relief is being used.
Rent payments: In what could prove to be welcome news for landlords, tenants may be encouraged to meet rental payments on time more stringently. The government want to make sure a first-time buyers’ history of paying their rent on time is recognised in credit scores and mortgage applications which, in turn, will incentivise renters to pay up more punctually, and more consistently.
Long-term tenancies: Following the RLA’s proposal for encouraging long-term lettings, the government has pledged a follow-up consultation on the matter.
Now, with the longevity of tenancies a big focus point for landlords, it might be time to arrange your affairs accordingly - which means gearing your properties towards long-term tenants.
And honestly speaking, it couldn't have come at a better time as we are now entering the age of the 'Silver Renter. Read our news piece on the 'Silver Renter' and find out how you can capitalise on this new property renting trend.