Overall, the Spring Statement 2022 was relatively quiet for landlords. In this post, we look at the key areas that property investors need to know about.
For the next five years, homeowners will not have to pay VAT on energy efficiency materials such as solar panels, heat pumps or insulation.
This incentive will make it cheaper for landlords to make their properties more energy efficient, ahead of the minimum energy efficiency standard for rental properties, which is set to be increased to C for new tenancies from 2025 and extended to existing tenancies from 2028.
Property investors in England have been spared a hike in stamp duty, despite speculation that the government would raise the tax on additional homes from three percent to four percent.
Although it wasn't mentioned in the most recent Spring Statement, the government is looking at ways to simplify the tax system for landlords.
The Office for Tax Simplification (OTS) has launched an online survey and a "Call for Evidence" where they want landlords' views on:
the complex parts of paying tax on property income
the differences between rules for residential lettings and Furnished Holiday Lets
how easy it is to report the right amount of income and qualifying expenses
suggestions for improvements to the current system
The consultation is open now and closes on 5 June 2022.
“The Chancellor’s spring statement was rather uneventful for landlords. For many, no news will be good news. But with an inflation and cost of living crisis ahead of us, is doing nothing enough to support tenants and landlords?”Provestor CEO, James Poyser
The income threshold for at which point people start paying National Insurance will rise to £12,570 in July, which the chancellor said was a tax cut for employees worth over £330 a year
He pledged to cut basic rate of income tax by 1p in the pound before the end of this Parliament
The Employment Allowance, which gives relief to smaller businesses' National Insurance payments, will increase from £4,000 to £5,000 from April. There is certain eligibility criteria to meet when claiming the Employment Allowance and it cannot be claimed where the director is the only employee.
Millions of households are facing a 54% rise in the cost of a typical annual gas and electricity bill when the regulator's new, higher price cap takes effect on 1 April. The average price of petrol has risen by more than 40p per litre since last year's Spring Statement.
The chancellor said he had already taken "decisive action", in helping people with their bills. This includes a £150 council tax rebate for 80% of households, followed by a £200 discount on bills in October which will need to be repaid, and an expansion to a support scheme for vulnerable people.
Fuel duty will be cut by 5p per litre until March 2023.
Homeowners installing energy efficiency materials such as solar panels, heat pumps, or insulation will see VAT cut on these items from 5% to zero for five years
Local authorities will get another £500m for the Household Support Fund from April, creating a £1bn fund to help vulnerable households with rising living costs
The Office for National Statistics (ONS) said prices rose by 6.2% in the 12 months to February - the fastest for 30 years.
The UK economy is forecast to grow by 3.8% this year, according to the Office for Budget Responsibility (OBR), a sharp cut from its previous prediction of 6.0%
The economy is then forecast to grow by 1.8% in 2023, 2.1% in 2024, 1.8% in 2025 and 1.7% in 2026
The annual inflation rate was 6.2% in February, and is likely to average 7.4% for the rest of this year, but with peak of 8.7% in the final quarter of 2022
The unemployment rate is now predicted to be lower over the next few years than in the OBR's previous forecast in October
In the Autumn Statement, the Chancellor Jeremy Hunt set out his plan to promote growth. In this post, we look at the key tax changes that property investors need to know about.
Nick Sheppard, managing director of Framework Mortgaging, shares his insights on the mortgage market and key things for buy-to-let investors to consider heading into 2024.
The upcoming Renters' Reform Bill, as discussed by Housing Secretary Michael Gove, aims to fundamentally alter the relationship between landlords and tenants in the UK. The bill is designed to offer tenants enhanced protection against unpredictable rent increases and other issues. In this blog, we’ll explore exactly what the proposed reforms mean for landlords.