Spring Budget 2017: no reference to new property taxes
Chancellor Phillip Hammond’s Spring Budget saw no direct reference to the introduction of mortgage interest tax relief charges for landlords which many had previously campaigned to be scrapped.
However, it did announce measures that would reduce the advantages of the self-employed over the employed in relation to National Insurance and tax. This may cause concern for landlords who set up companies to minimise the impact of the mortgage interest change.
According to the Residential Landlords Association, 20% of landlords are estimated to be affected by the National Insurance changes.
Despite the Treasury previously researching the impact of stamp duty on residential transaction levels and on revenue achieved, the Chancellor has ruled out any action advising he would, if required, revisit this issue later in 2017.
Hammond has advised MPs that the economy has continued “to confound the commentators with robust growth, record employment, and a deficit down by two-thirds.”
Additional measures outlined in the Budget include reducing corporation tax to 19% this year which will fall to 17% in 2020; capping unnecessary increases in business rates for small businesses; a rise in the National Living Wage and a higher tax allowance for those earning above £45,000.
The Chancellor also confirmed this would be the final Spring Budget, in future there will be one government fiscal event in the autumn of each year.
Full article available on LettingAgentTODAY: https://www.lettingagenttoday.co.uk/breaking-news/2017/3/budget-no-new-property-taxes–but-landlords-may-still-be-hit