The Spring Budget is the smaller of the two annual financial and fiscal briefings where it’s not the major changes that make the news but the smaller, more detailed policy.
You might have seen that the Chancellor had to perform an embarrassing climb down on national insurance contributions for the self-employed. But what, if any, ramifications did this Spring Budget have for property investors and buy-to-let landlords?
Good or bad news for investors?
The first thing to say is that there wasn’t much in there at all about housing. Whether that’s a good thing or not is a different matter. There was no mention of mortgage relief or stamp duty. But the rates of corporation tax will fall to 19% this April and then again to 17% in 2020. So, if you hold property as part of a company, this is good news for you.
There was an extension until 2019 for landlords to keep digital records and send quarterly updates to HMRC. Plus, there was some rent-a-room relief, with the government agreeing to consult proposals to redesign the scheme so that it’s better targeted to long-term lettings. It is hoped that this will increase supply of affordable long-term lodgings.
The NI fury
So what of the national insurance debacle? Well, as many property investors are self-employed and the planned rise was set to target those earning more than £16k a year, it looked like bad news. But after much public outcry about the Conservatives reneging on an election pledge, they have been forced to shelve policy. Good news in the end.
Similarly positive was the news that unemployment is at its lowest for 25 years. Which is definitely good for buy-to-let landlords. However, the reduction in the dividend allowance for private company owners from £5k a year to £2k is definitely not so good.
More to come…
It looks like we’ll have to wait until the next major budget in the Autumn Statement to get bigger and more definite news concerning property investors. Until then, things remain much the same as they were.
Here at Agile Property, we like to think of ourselves as experts on all things property market related. So, if you have any questions about investing in the Norwich area, then please feel free to get in touch. We’re happy to talk about any planned projects and give advice on anything from first time investments to large portfolios.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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