The Budget has seen dramatic announcements from Chancellor Rishi Sunak referring to the property sector.
For anyone, landlords included, buying properties, the stamp duty holiday on properties up to £500,000 will be extended from March 31 to June 30; from July 1, the holiday will apply only on properties up to £250,000 until the end of September. It will not be until October 1 that the pre-Covid stamp duty thresholds and levels will resume.
But landlords who have incorporated as well as letting agency businesses will be disappointed to know that Corporation Tax is to increase from 19 per cent to 25 per cent from April 2023. There will be changes to how it is applied, especially for smaller companies, but this is likely to affect the trend towards buy to let investors incorporating.
There has been no announcement on Capital Gains Tax, prompting speculation this will be the subject of extensive consultation on radical changes, beginning on March 23 with the release of so-called 'tax day' proposals.
Meanwhile Chancellor Sunak has also confirmed that there will be government-guaranteed 95 per cent mortgage loans available for buyers from next month, on the purchase of properties up to the value of £600,000; however, this is thought not to apply to investment purchases.
Today’s budget will without doubt keep an already extremely active property market firing on all cylinders and we look forward to assisting where we can. For any assistance with buying, selling, or renting please contact your nearest branch.