Buy-to-let landlords need tax clarity in the Autumn Budget
Buy-to-let landlords need clarity on tax in Autumn Budget instead of confusing policy ‘leaks’, say leading audit, tax and business advisory firm, Blick Rothenberg.
Heather Powell, a partner at the firm, said: “The ‘kite flying’ we have seen in recent months, where the government ‘leaks’ potential taxes to gauge public opinion is extremely unhelpful. It is creating uncertainty in the property market, and unnecessary stress for landlords and their tenants. Instead of ‘kite flying’ the government should either confirm which taxes will or won’t happen in the budget, or keep quiet until the 26 of November.”
She added: “landlords need to know the Energy Performance Certificate (EPC) requirements through to 2040 so they can make plans and budget for works. They need grants, soft loans or tax relief for works required to improve the energy performance of homes, which will reduce the carbon emissions of the country, and utility bills for tenants.”
Heather said: “The government’s position on National Insurance, Income Tax, Capital Gains Tax (CGT) and Inheritance Tax (IHT) needs to be made clear. The change in the deduction for interest has already led to many buy to let landlords selling up, and the suggestion that National Insurance could be charged on rental income is causing many more to consider whether an ongoing buy to let portfolio, held personally, is viable.”
She added: “Individual landlords need clarity on their tax filing requirements. Making Tax Digital will require landlords to file quarterly with commercial software, this project needs to be seamless, and add value for the landlords as well as HMRC, but neither result appears likely at the moment.”
Heather said: “The chancellor needs to take care to ensure that the buy-to-let landlords with a few properties held personally are not driven out of the market as corporate landlords are not in a position to fill the shortfall in rental properties that would be generated by an exodus – and many renting properties are not in a position to buy.”