The Chancellor has today (22nd November) delivered the Autumn Budget. This briefing sets out the key policy announcements impacting on the private rented sector (PRS) and landlords’ businesses. You can download the NLA's full briefing here.
Headline announcements include:
- Longer tenancies – The government will soon consult on the barriers to landlords offering longer, more secure tenancies to those tenants who want them.
- Private rented sector access schemes – The government will provide £20 million of funding for schemes to support people at risk of homelessness to access and sustain tenancies in the private rented sector.
- Empty homes premium – The government is keen to encourage owners of empty homes to bring their properties back into use. To help achieve this, local authorities will be able to increase the council tax premium from 50% to 100%.
- Universal Credit Changes - From February 2018 the government will remove the seven-day waiting period so that entitlement to Universal Credit starts on the first day of application.
- Capital Gains Tax (CGT) payment window – The introduction of the 30-day payment window between a capital gain arising on a residential property and payment will be deferred until April 2020.
- Mileage rates for landlords – The government will extend the option to use mileage rates to individuals operating property businesses, on a voluntary basis, to reduce the administrative burden for these businesses.
- Corporate indexation allowance – To bring the UK in line with other major economies and broaden the tax base through removing relief for inflation that is not available elsewhere in the tax system, the corporate indexation allowance will be frozen from 1 January 2018. Accordingly, no relief will be available for inflation accruing after this date in calculating chargeable gains made by companies.
- SDLT for First-time Buyers - From today, stamp duty land tax will be abolished for first-time purchases up to £300,000 and the existing rate of 5% will apply between £300,000 and £500,000. Will not apply to properties above £500,000.