Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
The Chancellor George Osborne has just delivered his Government’s Budget.
Quick reference details for Landlords Below:
Stamp Duty surcharge of 3% on residential property to apply to all investors regardless of size.
Stamp Duty on commercial property transactions is to be reformed. Our understanding is that bandings will be applied similar to residential property, albeit with a zero rate up to £150k and then 2% of any amount over £150K and up to up to £250K and then 5% of any amount over £250k. As an example, on a property that costs £300,000 the SDLT would be £4,500 – i.e. £0 on the first £150k, 2% on the next £100k (£2,000) and finally 5% on the next £50k (£2,500). If our understanding is correct then this will also impact on on related transactions of 6 or more connected property transactions (e.g. at incorporation of a property portfolio). More on this HERE
Capital Gains Tax Reduced – from 28% to 20% for higher rate tax payers and from 18% to 10% for low rate tax payers from April 2016. However there will be an 8% surcharge on residential property leaving Landlords selling at the same old rate!
Maximum interest relief against profit capped at 30% of turnover, but this is only for the largest companies and will not affect Landlords. This was a concern for Landlords pre-Budget.
Tax free income tax allowance threshold – increased to £11,500 from April 2017
High rate tax threshold – increased to £45,000 from April 2017
Corporation tax – decreased to 17% by 2020
Insurance premium Tax IPT – increased 0.5% and funds raised to be spent on UK flood defences (£700million)
Fuel Duty – Frozen again this year
Class 2 National Insurance for self employed to be scrapped
The Office for Budget Responsibility has downgraded growth forecasts due to external economic headwinds from the uncertainty in the Global economy.
Growth for 2015 was 2.2% but the forecast has reduced from 2.4% to 2.0% in 2016 with 2017 growth of 2.2% and then 2.1% for the following years.
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