Following Philip Hammond’s Autumn Budget announcement, we've taken a look at what it could mean for landlords in the UK – including changes to the income tax personal allowance and higher rate thresholds.
Chancellor Hammond opened the 2018 Budget, with a confident prediction that it would “open a new chapter in our country’s economic future.”
The statement comes at a time of uncertainty for the British economy. Prime Minister Theresa May said earlier this month that the government had overseen an end to austerity, but there remain concerns about the impact of global economic shifts and the UK’s relationship with the EU.
Landlords have been at the sharp end of taxation changes in recent years. So what does today’s announcement mean for landlords and the private rented sector?
The 2018 Budget was relatively light on announcements for landlords and the private rented sector.
Perhaps the most important announcements were around personal tax, including the changes to the personal allowance and higher rate income tax thresholds.
The expansion of the housing infrastructure fund may also prove important, but it remains to be seen how an increase in housebuilding will impact the PRS.
Similarly, the issue of land banking is a key sticking point in the sector and, according to some commentators, a crucial element in the so-called 'housing crisis', but we'll have to wait for the Treasury's response to the Letwin Report to understand how the government intends to address the issue.
Compared with recent changes, landlords have got off lightly in the 2018 Budget. The last few years have seen a raft of tax and legislative changes that the sector have railed against, most notably the scrapping of tax relief for mortgage interest payments.
UK landlords may find themselves breathing a sigh of relief today, as restrictions on the private rented sector do not appear to have been tightened any further.
What do you think of the 2018 Budget? What will it mean for landlords like you? Let us know in the comments.
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22 June 2020 • 9-minute read
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