Spring Budget 2017 – Landlords Reactions

Spring Budget 2017 – Landlords Reactions

13:40 PM, 8th March 2017, About 7 years ago 41

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philip hammondThe Spring Budget 2017 was spectacularly boring and for a change barely affects landlords.

One slight change is that the £5,000 dividend rate tax allowance will reduce to £2,000 per person in 2018, thus impacting incorporated landlords as well as all other others with shares in companies.

To a basic rate tax-payer that will mean an extra £225 a year in tax.

For higher rate tax-payers it’s a £975 a year increase and £1,143 a year for additional rate tax-payers with annual taxable earnings over £150,000.

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Mark Alexander - Founder of Property118

13:57 PM, 8th March 2017, About 7 years ago

No announcements on incorporation relief - now that is a relief!

Simon Hall

14:07 PM, 8th March 2017, About 7 years ago

Reply to the comment left by "Mark Alexander" at "08/03/2017 - 13:57":

Mark, I am not sure if I misheard the Chancellor, but he did make reference by stating those who incorporate their existing affairs into Ltd Company and LLP to take unfair advantage needs to be addressed.

I did think for vey split second that, he was going to remove S162 Relief but to my surprise he moved on. He may be in the process of looking at it and may announce it in later Budgets?

Monty Bodkin

14:13 PM, 8th March 2017, About 7 years ago

A couple of positives for landlords;

Rent-a-room relief – The government will consult on proposals to redesign rent-a-room relief, to ensure it is better targeted to support longer-term lettings. This will align the relief more closely with its intended purpose, to increase supply of affordable long-term lodgings.

Tax simplification – Following consultation, the government will increase the cash basis entry threshold to £150,000, and exit threshold to £300,000, and will extend the use of the cash basis to unincorporated landlords.

Simon Hall

14:18 PM, 8th March 2017, About 7 years ago

Reply to the comment left by "Monty Bodkin" at "08/03/2017 - 14:13":

Hi Monty, the threshold is for Gross Income or is it Net Income. So if Gross income is £84000 above VAT threshold but Net income is only £30000, which one they will select.

I heard him saying those small businesses under the VAT threshold, their digital Tax return requirement will be delayed by 1 year. Are unincorporated landlords considered to be small businesses? I did not think so.

Monty Bodkin

14:24 PM, 8th March 2017, About 7 years ago

Reply to the comment left by "Simon Hall" at "08/03/2017 - 14:18":

Don't know Simon, hopefully it will become clear.

Tobias Nightingale

14:37 PM, 8th March 2017, About 7 years ago

The budget document states that landlords are included for your information folks (for the mtd delay of a year.

Only question mark I have is what about foreigners or non residents are they going to have to comply with the mtd regime.

To expect people that are not even from here to do 4 returns a year seems a tad onerous.

Simon Hall

14:41 PM, 8th March 2017, About 7 years ago

Reply to the comment left by "Tobias Nightingale" at "08/03/2017 - 14:37":

Hi Tobias, I have checked it on HMRC website and you are correct that it has been extended for those Landlords who sit under VAT threshold to April 2019 as opposed 2018. However I am not sure if it is based on turnover or income?

Tobias Nightingale

14:45 PM, 8th March 2017, About 7 years ago

Reply to the comment left by "Simon Hall" at "08/03/2017 - 14:41":

Hi Simon,
According to my electrician vat is liable on 'EVERYTHING' once your turnover is over the vat thresholds ie not everything above that amount. So being the worst option which politians have a knack of choosing it will be turnover I suspect.

NW Landlord

15:43 PM, 8th March 2017, About 7 years ago

I don't see how incorporating your business to basically Survive is gaining an unfair advantage over anything I believe this is the governments vision of the PRS as the money supposedly generated by s24 is peanuts in the grand scheme of things they want it tidied up with landlords under a corporate ltd company banner as it's easier to maintain for HMRC through companies house

Neil Patterson

16:28 PM, 8th March 2017, About 7 years ago

Responding to the Chancellor’s Budget announcement today Richard Lambert, Chief Executive Officer, National Landlords Association (NLA), said:
“The Chancellor has passed up his last opportunity to reverse the damaging plans to restrict mortgage interest relief for landlords before they hit, or even to act on suggestions as to how he might ease the immediate impact. Sadly, he still seems convinced by the Treasury’s analysis of the consequences, and it looks like he will only change his mind when the reality proves different.
“That’s little comfort to the landlords who will be forced up a tax bracket as a result of the changes or potentially forced out of business, nor their tenants who will be faced either with higher rents or the struggle to find another home in an already pressured housing market.
“However, we’re pleased the Government has listened to our calls to delay the implementation of the Making Tax Digital programme as it has the potential to cause chaos as landlords struggle to get to grips with the demands of submitting quarterly tax returns online”.

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