Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 4 weeks ago 47
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Private sector landlords play a vital role in the UK property sector which is generating over £50bn in rental payments contributing billions to UK treasury in income taxes.
“Rental income is subject to income tax – to say nothing of the Stamp Duty premium paid by B2L landlords. It seems only fair that it should be subject to the same Government guarantees as other incomes.
“A blanket freeze on all possessions activity will protect tenants in the short term, it is bound to lead to an accumulation of arrears that will be all the harder to deal with once the freeze is lifted.
“A three-month ban on possessions activity will result in even longer spells without rental income – possibly six months or more of state-enforced void periods.
“Payment holidays on buy-to-let mortgages will be of limited help to landlords who in many cases rely on income from a small number of properties. If one or more of these is not generating an income for an extended period, it could cause families real financial difficulty.
“Landlords paying up to 66% tax increase by 2020/2021 The change is being phased in over four years, ending in the 2020 to 2021 tax year. Accountants Blick Rotherberg calculate that by then, higher rate taxpayers could be paying up to 66% in tax.
“This percentage reflects the overall effective rate of tax, calculated on the basis that a landlord who’s a higher rate taxpayer can no longer get full tax relief – as they could before – on their mortgage interest.
“The private rented sector remains the second largest tenure in England, and has grown in the last 20 years.”
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