How landlords fared in the 2018 Autumn Budget
Chancellor Philip Hammond delivered his budget with confidence this month, stating it would “open a new chapter in our country’s economic future.”
Unlike the previous Budget, the 2018 Autumn Budget didn’t focus heavily on the rental and housing sector. However, there were announcements that will affect landlords across the UK.
Take a look at how Britain’s private rented sector landlords fared in the 2018 Autumn Budget.
Income tax personal allowance rise
One of the key features of the Budget was a rise in the income tax personal allowance. From April next year, the personal allowance will rise from £11,850 to £12,500. The higher rate tax bracket will also increase from £46,350 to £50,000. Subsequently, landlords at both end of the income spectrum will have more money in their pocket in wake of the income tax personal allowance rise.
Letting relief on Capital Gains Tax limited to shared occupancy properties
Another announcement affecting the sector, was that as from April 2019, letting relief on Capital Gains Tax will be limited to landlords sharing occupancy in a property with tenants.
No drastic changes for the rental industry
In stark contrast to the 2017 Budget when a wealth of tax and legislation changes were announced designed to tighten up the industry, the 2018 Budget was significantly lighter on landlords, which may have come as welcome news.
As landlord Neil Patterson, a member of the Landlords Union, wrote in response to the Autumn Budget:
“Based on previous Budgets sometime no news or very little news is good news or as good as it gets!”
With landlords not faring badly at all in the recent Budget, and with the cost of renting property in Britain forecast to increase by almost 2% over the next 12 months, now could be considered a good time to invest in buy-to-let.
Stirling Ackroyd are market leaders in all aspects of property sales and letting and management across London and the South East. If you would like to discuss your buy-to-let aspirations in the capital and wider vicinity, get in touch with our team of property experts today.