SPRING BUDGET: Summary for Landlords in England

landlord
Mar 08 | 2021

SPRING BUDGET: Summary for Landlords in England

  The hotly anticipated Spring Budget has arrived and Landlords are able to breathe a sigh of relief - at least for the time being. The relevant provisions are summarised as follows: - Stamp Duty Land Tax holiday (for properties in England and Northern Ireland up to £500,000) is extended until 30th June 2021; - Business rates holiday until end of June 2021 (and discounted rates thereafter) - An increase on Corporation Tax on company profits is delayed until April 2023, when it will increase to 25% (relevant to both incorporated Landlords and letting agency businesses) - Capital Gains Tax exemptions are frozen at their 2020-21 levels until 2025-26; - For Landlords of commercial premises, a £5 billion Restart grant for shops and other businesses; - The £20.00 a week uplift in Universal Credit (worth an extra £1,000.00 a year) will be extended for a further six months, and the Furlough Scheme is extended until end of September 2021. Notwithstanding the glimmer of some good news above, industry opinion has criticised the lack of support for Tenants in the Budget - and the inevitable impact this will have on their Landlords. Whist the Universal Credit and Furlough Scheme will enable Tenants to plan ahead, the fact remains that there has been a lack of support for Tenants during the Covid-19 pandemic, many of whom risk losing their homes and / or damage to their credit scores due to rent arrears. This is likely to have a significant effect on the Government's plans to turn Generation Rent into Generation Buy. The extension of the Stamp Duty Land Tax is a real boost for homeowners but Tenants appear to have been forgotten in the process. We cannot foresee what will happen in six months time, particularly when such emergency measures such as the Universal Credit uplift and Furlough Scheme may end, and Tenants are likely to be feeling the effect of the Covid-19 pandemic for months ahead. There are calls for the Universal Credit uplift to become permanent, as well as noises being made regarding more social housing and investment in housing benefit. It is thought these types of measures will provide security and safety for Tenants and confidence to seek work which will help to prop up the economic recovery for the difficult times ahead of us. For more formation on the services we can offer Landlords, please visit our Landlord Services page or call us on 0330 123 1131.  Joanna McBride - Solicitor Further information relating to the Budget 2021 can be found here.
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