Budget 2021 – Landlord Reactions

by Property118.com News Team

13:28 PM, 3rd March 2021
About a month ago

Budget 2021 – Landlord Reactions

Make Text Bigger
Budget 2021 – Landlord Reactions

Chancellor Rishi Sunak has given his 2021 pandemic recovery Budget with no immediate fiscal tax shocks, but the economy will look to be balanced in the medium term. Tax measures will include:

The Stamp Duty Holiday nil rate threshold of £500,000 to be extended to 30th June 2021 and then decreased to £250,00 until the end of Septemeber 2021 and return to the £125,000 threshold on the 1st October.

Personal Income Tax nil rate thresholds will be Frozen after the planned increases for April 2021 at £12,570 for the basic rate and £50,270 for high rate until 2026. While not increasing personal income tax this will increase the tax paid over time with inflation.

The Inheritance tax threshold will be frozen along with Capital Gains Tax threshold and Pensions lifetime allowance to the current levels.

Corporation tax will remain at 19% until April 2023 when it will be increased to 25%. However, there will be a small profits rate for below £50,000 tax at 19% after April 2023 and tapered increases of corporation tax up to 25% for profits from £50,000 to £250,000 and then a flat rate of 25% for £250,000 and above.

There will be a Super Deduction of 130% towards taxable profit for any investment costs in the next 2 years.

Companies will be able to offset losses against taxable income going back 3 years, allowing them to claim additional refunds of up to £760,000

There will be no increases in Alcohol or Fuel duty this year.

No changes to rates of National Insurance or VAT

The temporary increase of £20 a week in Universal Credit will continue for a further six months.

Comments

Neil Patterson

13:48 PM, 3rd March 2021
About a month ago

Pain has been delayed for most and we will have to wait and see if the OBR prediction for recovery by 2022 pans out and how this will change policy in future budgets.

Beaver

13:55 PM, 3rd March 2021
About a month ago

Anyone know how the "superdeduction of 130% towards taxable profits will work? Does it apply to all businesses including buy-to-let businesses?

Richard P

14:15 PM, 3rd March 2021
About a month ago

Expected worse is all I can say, but don't trust the capital gains it will go up at some point - super deduction for BTL, I very much doubt it

I think we all have a window now to decide to stay in or get out, but its a small window

Dylan Morris

14:20 PM, 3rd March 2021
About a month ago

95% mortgages guaranteed by the taxpayer. What can possibly go wrong !

Mick Roberts

14:46 PM, 3rd March 2021
About a month ago

Wowzers 6% increase in Corporation Tax.

Yes Beaver be nice if he lets us buy a house for 100k & we get 130k back in tax. Can't see it though for houses investment.

Matarredonda

14:53 PM, 3rd March 2021
About a month ago

Was anything said about IR35 does anybody know?
Thanks.

Howard Reuben CeMap CeRER

15:09 PM, 3rd March 2021
About a month ago

Santander's post budget announcement;

"Help to Buy: mortgage guarantee scheme

A new Help to Buy: mortgage guarantee scheme, supported by the government, is starting in April. We’re pleased to support this and are working to launch these products in line with the government timescales.

We intend to offer 95% LTV products to intermediaries. We’ll confirm our launch date over the coming weeks along with more detail on the scheme rules and policy, including eligibility and any additional requirements for borrowers".

So, don't expect immediate 95% LTV products, do expect them to be on a repayment basis only, also strict affordability rules and .. possibly quite high % rates too.

The scheme will be open for new mortgage applications from April 2021 to December 2022, reflecting the government view that the current scarcity of high loan-to-value lending is primarily a response to the pandemic rather than a more structural problem

Rbinscotland

15:10 PM, 3rd March 2021
About a month ago

There will be a Super Deduction of 130% towards taxable profit for any investment costs in the next 2 years.

What does this really mean ?

Olls63

15:16 PM, 3rd March 2021
About a month ago

Reply to the comment left by Matarredonda at 03/03/2021 - 14:53
No, nothing.
Probably best to assume it is going ahead

Dylan Morris

15:26 PM, 3rd March 2021
About a month ago

Reply to the comment left by Howard Reuben CeMap CeRER at 03/03/2021 - 15:09
Lenders have historically reduced the max ltv they will lend on a property value on a reducing scale something for example like this:

Up to £250,000 max ltv 95%
Up to £400,000 max ltv 90%
Up to £600,000 max ltv 85%

Sunak’s scheme provides for 95% up to £600,000. Just going to inflate the bubble even further.

1 2 4

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

PM advertises prospective tenants with animals will be ‘considered’