Budget 2021 – Landlord Reactions

Budget 2021 – Landlord Reactions

13:28 PM, 3rd March 2021, About 3 years ago 31

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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.


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Comments

Beaver

16:07 PM, 3rd March 2021, About 3 years ago

Reply to the comment left by Dylan Morris at 03/03/2021 - 15:26
If you think back to the last bubble, the reason why policy changed such that we were no longer allowed to deduct all our finance costs was to avoid another housing bubble.

Whiteskifreak Surrey

16:50 PM, 3rd March 2021, About 3 years ago

Reply to the comment left by Howard Reuben CeMap CeRER at 03/03/2021 - 15:09
I wonder what the interest rate on the 95% mortgages is going to be? Just asking.
As someone says, the pain is delayed but it will double hit us very soon.

Dylan Morris

17:05 PM, 3rd March 2021, About 3 years ago

Reply to the comment left by Whiteskifreak Surrey at 03/03/2021 - 16:50
The interest rate will probably be fairly low as the Taxpayer is taking on all the risk not the Lender.

Judith Wordsworth

17:18 PM, 3rd March 2021, About 3 years ago

Reply to the comment left by Whiteskifreak Surrey at 03/03/2021 - 16:50
Mortgages have never been so cheap even if interest is raised and still way less interest than when I first bought, which was 15%!

Dylan Morris

17:18 PM, 3rd March 2021, About 3 years ago

The 95% mortgage scheme is open to ALL house buyers not just First Time Buyers. And applies to all purchases, not limited to new builds as was the restriction under Help To Buy.
It is scheduled to finish 31st December 2022 which will cause a buying frenzy the second half of next year, assuming anybody can afford the inflated prices by then.
Image buying a property at 95% ltv in 2022 and then trying to sell it in 2023 when the scheme has ended. (Somehow I can’t see it ending at the end of 2022 as Sunak won’t want the bubble to pop).

Andrew

20:01 PM, 3rd March 2021, About 3 years ago

A brilliant property GIVEAWAY budget from Rishi Sunak - here is why this is a great budget - https://youtu.be/Zj-477nrxzA

This budget was full of good news and giveaways property investors can capitalise on

Olls63

21:05 PM, 3rd March 2021, About 3 years ago

Reply to the comment left by Andrew at 03/03/2021 - 20:01
Note 9 to the Finance Bill says the 130% super deduction applies "to companies within the charge of Corporation Tax".

JB

8:58 AM, 4th March 2021, About 3 years ago

Can anyone enlarge on how corporation tax will be tapered?

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

What does this mean for Landlords? Is it relevent for things like loft insulation and measures to meet EPC level C?

Olls63

9:09 AM, 4th March 2021, About 3 years ago

Reply to the comment left by JB at 04/03/2021 - 08:58
What you have described does not fall under the accepted description of Plant and Machinery, so will not qualify for the super deduction.

David

13:37 PM, 4th March 2021, About 3 years ago

The Tories clearly still haven't given up on the idea that home-owners = Tory voters.
- help to buy
- 95% mortgages
- stamp duty exemption extended
- no increase in CGT to disincentivise landlords to sell
Looks like they're trying to hold-on to the red wall voters from the last election

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