Some have suggested that the property sector got off lightly during the Chancellor’s Spring Budget, but undoubtedly some landlords will be nervous about the finer detail released earlier today which may affect them.
Richard Champion, deputy CIO at Canaccord Genuity Wealth Management, declared the budget was ‘a snoozefest’. ‘Although if you are self-employed, it was most definitely a “you lose” fest,’ he added.
The Chancellor announced that the rate of national insurance contributions from the self-employed would be changed to adjust the balance of favour from the self-employed. This means that landlords who set up companies to reduce the impact of the mortgage interest change will be hit again.
Stamp Duty rules are still in place and the housing crisis was barely mentioned. No new tax rules were introduced and the government will continue to go ahead with previously announced plans to tax individuals that receive rental income on residential property in the UK or elsewhere and incur finance costs (such as mortgage interest).
The Government may feel that they have already laid out their plans to address the housing crisis with the release of the Housing White Paper back in February. For property investors, the budget didn’t release any statement which directly addressed anything which would influence the lack of supply and high demand in growing northern cities such as Manchester. Buy-to-let still remains one of the most favourable investment options for those wishing to provide an additional revenue source through rental income.
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Source: City am Here’s what the property sector is expecting in this week’s Budget – from stamp duty to landlords to luxury homes; Estate Agent Today Budget: No new property taxes – but landlords may be hit; Property Investor Today Chancellor fails to deal with Britain’s ‘broken’ housing market