UC taper cut does not undo the damage

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Responding to the announcement in the Budget that the Universal Credit taper will be cut from 63 to 55 per cent from 1st December 2021, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Today’s announcement is welcome news for those private tenants who have struggled to afford their rents throughout the pandemic

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BREAKING: Landlords given a month longer to pay CGT bills, budget reveals

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Landlords have been given longer to pay their Capital Gains Tax (CGT) on residential property gains from 30 to 60 days, Chancellor Rishi Sunak has announced in his Autumn budget.

The measure, which takes effect immediately but was hidden in the budget statement’s lengthy accompanying detail, applies to UK residents who are selling residential property within England.

For non-UK residents disposing of property in the UK, this deadline will also increase from 30 to 60 days.

“This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification,” the Chancellor’s post-budget guidance says.

“When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.”

Previously, those reporting and paying tax on CGT had much longer – until the end of the tax year.

The Association of Accounting Technicians (AAT) says it has been lobbying for the past 18 months for this change.

It has highlighted member concerns that 30 days was not long enough, saying: “The process is reliant on clients setting up a CGT account online – which can take at least two weeks – within 30 days,” says its Head of Public Policy Phil Hall.

“Agents are not able to do this for their clients, which means this deadline is often missed, particularly around Christmas.

“It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer.

“I am very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Landlords given a month longer to pay CGT bills, budget reveals | LandlordZONE.

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BREAKING: Property sellers given a month longer to pay CGT bills, budget reveals

admin    Uncategorized     agents

Landlords have been given longer to pay their Capital Gains Tax (CGT) on residential property gains from 30 to 60 days, Chancellor Rishi Sunak has announced in his Autumn budget.

The measure, which takes effect immediately but was hidden in the budget statement’s lengthy accompanying detail, applies to UK residents who are selling residential property within England.

For non-UK residents disposing of property in the UK, this deadline will also increase from 30 to 60 days.

“This will ensure that taxpayers have sufficient time to report and pay CGT, as recommended by the Office of Tax Simplification,” the Chancellor’s post-budget guidance says.

“When mixed-use property is disposed of by UK residents, legislation will also clarify that the 60-day payment window will only apply to the residential element of the property gain.”

Previously, those reporting and paying tax on CGT had much longer – until the end of the tax year.

The Association of Accounting Technicians (AAT) says it has been lobbying for the past 18 months for this change.

It has highlighted member concerns that 30 days was not long enough, saying: “The process is reliant on clients setting up a CGT account online – which can take at least two weeks – within 30 days,” says its Head of Public Policy Phil Hall.

“Agents are not able to do this for their clients, which means this deadline is often missed, particularly around Christmas.

“It’s a common-sense measure that helps taxpayers and their accountants whilst maintaining increased revenue for the Exchequer.

“I am very pleased that HM Treasury and HMRC took on board the views of our members and changed their position accordingly.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Property sellers given a month longer to pay CGT bills, budget reveals | LandlordZONE.

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Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal

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Chancellor Rishi Sunak has cut the amount the government claws back from workers who receive Universal Credit (UC) top-ups from 63p to 55p for every £1 they earn, but also confirmed £5 billion in funding to help bail out more property owners hit by the cladding scandal.

The new UC announcement, together with a £500 increase in work allowances, means Sunak is supporting many of the lowest-paid families with a £2 billion scheme worth £1,000 a year on average to the poorest UC claimants who have their pay topped up by the state.

“This is a two billion pound tax cut for the lowest-paid workers in our country, supports their costs of living and rewards work,” he told MPs.

Sunak said it would affect some two million families, the majority of whom will be renters, and come into effect at the beginning of December at the latest.

He gave two examples. This included that a single mother earning the national minimum wage and renting her home would be better off by £1,200 a year, while a couple with two children renting their home would be better off by £1,800 a year.

Read more about Universal Credit.

Cladding costs

Sunak’s budget speech offered slim picking for landlords overall unless they property owners within tower blocks affected by the cladding scandal.

The Chancellor confirmed the government’s £5 billion to fund more relief for those facing financial difficulties following the Grenfell tragedy – many of whom are landlords.

Mary-Anne Bowring (pictured), MD of property management firm the Ringley Group, says: “A blanket tax on developers is fairer than leaving leaseholders to shoulder the burden but it is still a blunt instrument to use to fix the cladding crisis.

“Fundamentally, accountability should fall squarely on those who overlooked the potential hazards of unsafe cladding in the first place.”

Estate agent Jeremy Leaf (pictured) adds: “The £5 billion fund is a step in the right direction but nowhere near the sums mentioned as being realistic to resolve the problem.

“A proper assessment of what’s involved is required, as well as enough tools to do the job in terms of engineers and surveyors and robust checking.

“Why should anyone be stuck in something un-mortgageable, particularly those blocks with very limited amounts of cladding? They have been tarred with the same brush as those blocks with extensive issues.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Autumn Budget 2021: Support for lowest-paid tenants but also landlords hit by cladding scandal | LandlordZONE.

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Budget 2021 – Landlord Reactions

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No Nasty New surprises were announced for Landlords in Chancellor Rishi Sunak’s 2021 Budget speech to Parliament today.

A key concern for landlords is inflationary pressure having to be released by the Bank of England increasing interest rates.

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Landlord duo who charge tenants 20p a shower are refused HMO licence

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A landlord couple have been refused an HMO licence renewal after admitting they charged tenants 20p to use the shower.

Glasgow councillors heard that Elinor and Jim Johnstone installed a coin meter in the four-bed HMO in Cartvale Road, Langside (pictured), and would travel from Inverness to empty it every couple of months.

They told the licensing and regulatory committee that 20p would give tenants 20 minutes in the ‘pay as you go’ shower.

A Glasgow Council inspection found seven issues at the property, including the lack of a carbon monoxide detector and a kitchen in one bedsit needing to be thoroughly cleaned, redecorated and the floor covering replaced. The property has been operating as a licenced HMO since at least 2008.

Three bedrooms also required modernising if the licence was granted in the future.

Disappointment

Councillors quizzed the pair over the regime for checking the property and they admitted the routine would involve travelling. Expressing disappointment, committee chair councillor Alex Wilson asked: “Did you just empty the coins and walk away?”

Councillor Rhiannon Spear (pictured) said she couldn’t believe her ears when she heard people paid to wash every time.

She added: “Renting to anybody in Glasgow is an absolute privilege. I’m not sure you understand the responsibility and are keeping up with the responsibility.”

Pointing to Covid as an issue, Mr Johnstone told them: “We have not been able to get down and do the inspections we would have in the past. We hold our hands up. We got it wrong this time. Things will improve – we are happy to admit that.” He added that a letting company would now be hired to manage the property.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord duo who charge tenants 20p a shower are refused HMO licence | LandlordZONE.

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