Landlord Reactions To The 2018 Autumn Budget
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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Autumn Budget 2018 and Universal Credit
Member Since February 2016 - Comments: 1056
10:54 PM, 29th October 2018, About 7 years ago
Reply to the comment left by Mick Roberts at 29/10/2018 – 18:36
I heard on Money Box, BBC 4, that the two week run on of HB applies only as UC is rolled out into a region, it does not apply where a tenant is “migrated” onto UC because of a change of circumstances (job loss, birth of another child, becoming disabled etc.). Maybe that is why you are not seeing it happen. On the other hand, it could just be incompetent administration.
Member Since November 2014 - Comments: 11
5:49 AM, 30th October 2018, About 7 years ago
In regard the lettings relief, I assume that the budget allows this for property where it has been in shared occupancy with the owner but removes it for any period where it was exclusively let to a tenant. This is potentially a huge change, adding up to £40,000 to the taxable gain.
Member Since April 2014 - Comments: 985 - Articles: 2
8:18 AM, 30th October 2018, About 7 years ago
Autumn Budget document 2018: https://www.gov.uk/government/publications/budget-2018-documents/budget-2018
Member Since June 2013 - Comments: 3245 - Articles: 81
8:47 AM, 10th November 2018, About 7 years ago
Reply to the comment left by Old Mrs Landlord at 29/10/2018 – 22:54
Yes u could be will be right, as the local job centres & council HB staff don’t know.
So we are just missing waves of missing rent between these periods.