BREAKING: Spring Budget Announced! Here’s What It Means For Landlords
The spring budget took place today, with Chancellor of the Exquisitor Rishi Sunak announcing an extension to the stamp duty holiday.
Free 30 days listings on:
- ✓ Rightmove
- ✓ Zoopla
- ✓ Mashroom
It means some 300,000-plus sales should now go through without a hitch, with many people (including investors) breathing a sigh of relief.
The extension of the stamp duty holiday is undoubtedly good news, and a welcome surprise is the freeze of the Capital Gains Tax allowance, which will remain at £12,300.
Elsewhere, 95 per cent mortgages will benefit homeowners but not so much landlords.
What does all this mean for you? We’ve put together a summary of the key points from the budget if you’re a landlord.
Stamp duty holiday extension
The stamp duty holiday got a much-anticipated extension, giving those currently in the middle of transactions enough time to complete and still take advantage of potential savings. And that includes landlords.
The band at which stamp duty is paid will then be raised to £250,000 until October, before returning back to £125,000.
The holiday has been particularly popular with landlords looking to save on stamp duty, especially after the three per cent hike in 2016. In December 2020, it was reported that the number of landlords had reached an all-time high in the UK, with the stamp duty holiday playing a vital role.
If you’re on the market for another investment, news of the extension will come as good news indeed. You can think about buying a rental home in time for the deadline and potentially save thousands. Book a call with one of our expert BTL mortgage advisors to get free advice about the best options for your investment.
Capital gains tax allowance frozen
Alongside the good news with stamp duty, the Capital Gains Tax allowance will be frozen at £12,300 – positive news for those who expected the allowance to be reduced or even removed entirely.
One of the other fears was that Capital Gains Tax rates above the tax free threshold would match income tax rates, but this has not happened.
Spring budget round-up
Ultimately, the spring budget offers good news for landlords. The stamp duty holiday could save you thousands, and the freeze to CGT is a welcome surprise.