TLC For Landlords Please

With the Budget report only a day away, the National Landlord’s Association are already asserting the necessity for the government to focus on housing to help encourage further property investment across the property market…

With the rental sector growing by 4.1% in the last 9 years, the NLA is looking for the government to acknowledge this growth and to take note of the following 5 sections:

Capital Gains Tax: Currently residential property is excluded from access to ‘roll-over’ relief which in the past has discouraged property investors from investing in property. Under the NLA’s advisement they believe that should property landlords be allowed to utilise roll-over reliefs for their business planning, this will encourage reinvestment of released capital gains. And should this occur, property investors will be able to use this released capital gains to renovate and modernise property stock.

Stamp Duty Land Tax: The NLA are calling upon the government to reform the ‘slab system’ whereby tax is calculated based on fixed rates in arbitrary price bands. In addition, in cases where landlords make multiple property investments, the NLA believe each property should be treated individually and NOT as a bulk transaction.

Value Added Tax (VAT): Rates for performing property renovations and home improvements should be lowered to 5% according to the NLA. Currently property landlords do receive decent provisions for meeting targets for creating decent property lets. However, cost barriers need to be removed in order to encourage more property investors to modernise their rental properties.

Council Tax: With the majority of multi-occupancies receiving differing assessments for their council tax, the NLA is asking the Government to provide clearer clarification amongst local authorities to enable property investors to maximise affordable and much-needed accommodation.

Rent-a-Room Scheme: The NLA is currently behind the ‘Raise the Roof’ campaign which argues that completing a tax return form can create major obstacles for property owners considering taking on lodgers. For this reason the NLA are proposing that the tax-free threshold for property owners who take on lodgers should be increased from £4,250 a year to £9,000 to help keep them up to date with current property rental prices.

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Jatinder Singh, Property Mentor Delegate

After years of watching others earn large capital gains from property, I knew reading about this niche wasn't enough to satisfy my curiosity, I needed to get MY slice of this strong investment vehicle too. That was x years ago and since then I have managed to: invest in 2 properties (one with a £60,000 saving); earn consistent £1,000+ monthly cash flows, and have got a couple more properties waiting in the pipeline. Read more