The National Landlords Association (NLA) has responded to Chancellor Philip Hammond’s announcement about the Autumn Budget. It was recently stated that the Budget will take place on Monday 29th October.
The NLA has put forward the following recommendations:
- The Government should immediately review the removal of finance cost relief for private landlords
- A package of Capital Gains Tax reduction measures should be introduced, in order to encourage the sale of poorly performing investment properties, as well as properties where the proceeds of the sale will be entirely reinvested into the lettings business. It should also take into account properties that have been invested in, and utilised, for a period of more than ten years, and properties that are eligible and suitable for sale to existing tenants.
- The Government should introduce measures in order to facilitate the tax-efficient movement of a letting portfolio into a corporate structure
- It is also advised that it establishes and backs an investment vehicle that allows the sale of properties into a managed fund
- Landlord’s Energy Saving Allowance (LESA) should be reinstated, and it should be established to a level sufficient enough to improve the tax efficiency of carrying out relevant works
- The Capital Gains Tax surcharge for property sales should be removed
- The Government should introduce Capital Gains Tax tapering, along with business asset rollover relief for let private residential properties
- The Stamp Duty Land Tax (SDLT) levy on additional properties should be abolished
Meera Chindooroy, Policy and Public Affairs Manager at the NLA, has said: “We believe the Government needs to consider the implications of the policies they have introduced in recent years. Already we have seen landlords start to sell property, which only serves to limit the amount of choice available to renters and continue to make housing unaffordable.
“Landlords are running a business, but the Government refuses to acknowledge that and treat them appropriately. If they want landlords to continue to provide homes, and fill the gap in social housing, they need to properly incentivise landlords to remain in business.”
You can read the NLA’s full Budget submission for further details on its proposed changes.