The Chancellor Rishi Sunak is expected to announce changes that will affect landlords in his Autumn Budget on 27 October.
This will be the second Budget in 2021, and with the continuing economic uncertainty, shortages, and pressure to plug the financial black hole in funding for social care, will more tax rises be on the cards?
The Chancellor will also be setting out his Spending Review, which usually happens about once every three years. Here’s what this could mean for the property market and landlords.
The government’s Green Homes Grant closed for applications in March this year after just six months, and it was widely criticised in the media for its limited success.
The scheme was designed to help improve the energy efficiency of thousands of homes across the country by offering vouchers to help homeowners pay for any renovation. But various failures in the scheme, including delays in processing applications, and the fact that vouchers only covered two-thirds of the costs, meant the grant helped thousands of fewer homes than predicted.
With the UK due to host the UN climate change conference in Glasgow next month, there’s even more pressure on the government to demonstrate its commitment to climate action. So it’s possible we could well see a reboot of the Green Homes Grant in the upcoming Budget, but it would need vital improvements.
There’s been speculation that changes to capital gains tax could be revisited in this month’s Budget after rumours failed to materialise in the March Budget. This has been on the cards for some time as the Office of Tax Simplification has previously recommended an increase in capital gains tax to bring it in line with income tax rates.
That said, the Chancellor may be unlikely to announce more tax changes following the recent hike in National Insurance rates.
Ministers are said to be considering a rise in council tax rates to pay for the social care crisis with any changes coming in from April 2022.
This comes as Rishi Sunak defended tax rises at the Conservative Party conference in Manchester earlier this week. He said: "Whilst I know tax rises are unpopular, some will even say un-Conservative, I'll tell you what is un-Conservative: unfunded pledges; reckless borrowing; and soaring debt."
If your tenants have bills included in their rent, make sure you’re not going to be out of pocket with any increase in council tax and the rising energy prices.
Keep an eye on the Knowledge centre and our social media channels for all the latest updates on the Budget. And in case you missed it, here’s our predictions for the widely-anticipated rental reforms white paper due to be published in the coming weeks.
What are you hoping to see in the Budget? Let us know in the comments below.
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