Summer Economic Update – Landlords Reaction

by Property 118

13:46 PM, 8th July 2020
About a month ago

Summer Economic Update – Landlords Reaction

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Summer Economic Update – Landlords Reaction

The Chancellor, Rishi Sunak, has just given a Summer Economic Update to the house of commons as the second of three phases to guide the UK through the Covid-19 National Emergency.

The much anticipated, hyped and discussed Stamp Duty reductions increasing the threshold where no SDLT is paid to £500,000 will be introduced with immediate effect until the 31st March 2021. However, the Chancellor confirmed this will be available for ‘buying a main home’ and no such mention was made for second or investment properties leaving landlords and BTL out in the cold.

A £2 billion green homes grant scheme will be accessible for Landlords though and will contribute two thirds of the cost to energy efficiency improvements to all residential homes up to a maximum of £5,000.

The Chancellor said: ” As part of this package homeowners and landlords in England will be able to apply for vouchers from a £2 billion Green Homes Grant scheme this year to pay for green improvements such as loft, wall and floor insulation that could save some households hundreds of pounds a year on their energy bills while creating thousands of jobs for tradespeople.”

The rate of VAT applied on most tourism, accommodation, attractions and hospitality-related activities will also be cut from 20% to 5% until the 12th January. The detail on whether this will include Holiday Homes is not yet clear and further guidance on the scope of this relief will be published by HMRC in the coming days.

New .Gov update on Stamp duty click here:

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%


Comments

Whiteskifreak Surrey

15:00 PM, 8th July 2020
About a month ago

I am seriously worried who is going to pay for the Santa Claus give-away spree... Does anyone else see the remaining 20% of tax relief removed and taxing the whole whole rental income without allowing for any expenses? But surely "Boris the Landlord friend" could not allow for that, could he?
I am being sarcastic, but is is not a jolly sarcasm

Jim Fox

15:02 PM, 8th July 2020
About a month ago

Reply to the comment left by Neil Patterson at 08/07/2020 - 14:41
So, your understanding Neil, is that there's no change in Stamp Duty for Landlords buying BTL properties between now and March 2021?

Neil Patterson

15:14 PM, 8th July 2020
About a month ago

The 3% Surcharge applies but on top of the lower level.

Jim Fox

15:28 PM, 8th July 2020
About a month ago

Reply to the comment left by Neil Patterson at 08/07/2020 - 15:14
So will BTL purchases only incur the 3% surcharge, if the lower level tax is going to benefit from a Stamp Duty holiday until March?

Simon Hall

15:46 PM, 8th July 2020
About a month ago

Reply to the comment left by Seething Landlord at 08/07/2020 - 14:48
This is what my understanding is.

Neil Patterson

16:42 PM, 8th July 2020
About a month ago

Reply to the comment left by Jim Fox at 08/07/2020 - 15:28
Correct from the above HMRC guidance.

James Forbes

17:18 PM, 8th July 2020
About a month ago

Could the SDLT holiday be of benefit to investors who want to transfer ownership of properties from their own name to a LTD company structure?

reader

17:31 PM, 8th July 2020
About a month ago

Free money, No such thing.

It is time now to think of the consequences of so much money being pumped into the economy. Including when and who is going to pay it back.

Gromit

19:31 PM, 8th July 2020
About a month ago

Reply to the comment left by at 08/07/2020 - 17:31
Answer: Landlords

The Government has a record of giving nothing to Landlords (other than specious platitudes), and for take, take take.

They may call themselves Conservative but they are to the left of the last Labour Government.
What we need is a new political party which is conservative, that supports small business, and above all is fair.

Mike W

10:10 AM, 9th July 2020
About a month ago

Yes great for England - 90% of UK - but devolved governments very quiet. 4% is Scottish additional stamp duty and nothing about matching a £500k nil band in England. And of course an interesting story on Landlord zone about lenders pulling BTL products and refusing loans for student lets .....

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