Landlord Reactions To The 2018 Autumn Budget

Landlord Reactions To The 2018 Autumn Budget

16:59 PM, 29th October 2018, About 4 years ago 14

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The key headlines affecting UK landlords are:-

The Nil Rate Band Personal Tax Allowance will increase from £11,850 to £12,500 and the High Rate tax threshold will increase to £50,000. These figures were announced in previous Budget’s as targets for 2020. These increases will now become effective from April 2019, a year earlier than expected.

The Chancellor said Lettings relief will be limited to properties where the owner is in shared occupancy with the tenant. That makes no sense, because owner occupiers do not pay CGT anyway. We await further clarification on this, because the BBC website has simply repeated the Chancellors announcements, which are clearly flawed.

From 2020 PPR relief will only extend to 9 months following the letting of a property (currently 18 months)

There was no reversal of Section 24 mortgage interest relief restrictions or of the 3% Stamp duty surcharge for second homes.

Incorporation relief under TCGA92/S162 was unchanged and is still available to landlords, together with reliefs on Stamp Duty for partnership incorporation. Calls to extend the Stamp Duty relief on incorporation of businesses by sole owners were not acted upon.

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Neil Patterson

17:02 PM, 29th October 2018, About 4 years ago

Based on previous Budgets sometimes no news or very little news is good news or as good as it gets!

Darren Peters

17:09 PM, 29th October 2018, About 4 years ago

Lettings relief - is that the remainder of the 'tax relief' taken away by S24 or something else?


17:16 PM, 29th October 2018, About 4 years ago

I shudder to think of what Labours John McDonnells budget would have been like.
This budget; No skin off my nose.
Thankful for small mercys

NW Landlord

17:26 PM, 29th October 2018, About 4 years ago

after the outright assault over the last few years no news is good news in my eyes

Mark Alexander - Founder of Property118

17:40 PM, 29th October 2018, About 4 years ago

James Davis, Founder & CEO Upad and himself a portfolio landlord, commented:

“Whilst many landlords would have welcomed news that would have benefited them; whether that be in terms of the Stamp Duty surcharge, or a review of mortgage interest relief, the reality is that landlords provide a vital service to the UK’s housing market and policy changes, or not, would make little significant impact to that.

“Every year, without fail, UK Plc builds too few new homes. That deficit of new homes grows and grows and the contribution that the private rented sector makes in delivering sufficient quantities of homes is, therefore, vital. The government, after all, no longer holds any significant housing stock itself and people require a roof over their heads.

“It would be nice if government viewed landlords with more respect and recognised that for many, working within the PRS is a business choice which should, therefore, command the same respect as more mainstream business areas. However, I honestly believe we’re needed and that, therefore, our future is safe.”

Dr Rosalind Beck

18:08 PM, 29th October 2018, About 4 years ago

He clearly took the 'stick' part of 'Onwards' proposal, with a minor adjustment - made a stupid mistake, because they don't know what they're doing at the Treasury - and left out the carrot part (the idea of partially exempting landlords from CGT if certain criteria were met). Quelle surprise. Overall. all this will do is make it even harder and possibly less likely for some landlords to leave the sector.

Mick Roberts

18:36 PM, 29th October 2018, About 4 years ago

Reply to the comment left by Neil Patterson at 29/10/2018 - 17:02
Ha ha yes Neil. No news is good news.

The Muppets ain't got a clue.

All this talk on the news about DWP claimants moving from HB JSA etc. to UC and getting 2 weeks benefit run on. Well, it ain't happening.
And Landlord left in the dark not got a clue why HB has stopped.
A bit off topic, but I like a rant and budget related if he'd have talked about it.

terry sullivan

18:41 PM, 29th October 2018, About 4 years ago

there is often small print not announced on day--wait for experts to sift thru the whole budget paperwork


18:49 PM, 29th October 2018, About 4 years ago

Nothing for landlords again. But then again , I wasn't expecting much, just relieved it's not even worse.

Monty Bodkin

21:14 PM, 29th October 2018, About 4 years ago

Reply to the comment left by H B at 29/10/2018 - 18:49
Nothing for landlords again.

Dunno about that.

Joint owner, higher tax rate landlords will be about £2K better off from the increases in personal allowance and the higher rate.

Plus another hit on accidental landlords with the bit about lettings relief, putting a slight upward pressure on rents.

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