Landlords hit again

12-Apr-2016

The last couple of months have seen the introduction of a number of initiatives hitting buy-to-let property owners. With a number of our clients owning multiple properties we wanted to let you know the key changes and how they may affect you.

Firstly there was the abolishment of the wear and tear allowance meaning the end of the 10% of the rental incomes landlords were allowed to use for maintenance. Now landlords can only claim for maintenance that they can prove has taken place. See HMRC's website for the official line on this.

Next up was the increase of the Stamp Duty Land Tax (SDLT) for landlords or second-home buyers. For these people who have bought or are planning to buy additional property after 31st March the SDLT has risen by 3%. See more in our budget report section.

Lastly property investors have been excluded from the reduction in Capital Gains tax (from 28% to 20% on investment gains for higher rate taxpayers) and they will continue to pay the higher rate on second properties. This is also covered in our budget report section.

Please contact us if you would like further information on these points and how they will affect you.