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RLA RESPONSE TO THE BUDGET

Chancellor George Osborne has announced the following:

  • Capital Gains Tax for those on basic rate tax will remain at 18%

  • CGT for those on higher rate tax will rise to 28% from midnight tonight (22nd June)

  • Housing Benefit to be reformed – maximum payments to be £400 per week for a four-bed house or larger

  • Allowances to be reinstated for holiday lets

  • For an RLA summary for landlords please click here

    RLA chairman Alan Ward comments:

    “The omission of taper relief from the Budget will work against landlords who have held property for a longer period. The increase in property value will largely be accounted for by inflation. The lower rates of CGT are little compensation for this tax on inflation.

    “Restricting the higher rate to 28 percent for higher rate tax-payers is better than feared, but will cause some complications where property is jointly held by husband and wife landlords.

    “We are pleased the Chancellor has reinstated the allowances for holiday lets and look forward to pursuing the case with his department that this should be extended to all rented residential accommodation.

    “The measures to promote job creation in the regions will have a positive effect on the PRS – private residential sector – which is the primary provider of short term housing.

    “The review of Housing Benefit will required consideration in detail, but we welcome the review and hope the opportunity will be taken to restore tenants’ rights to choose direct payment of allowances to landlords.”

    RLA members are invited to provide comment via the RLA Member Forums or by emailing info@rla.org.uk

    About the author

    RLA

    RLA

    The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

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