UK Chancellor's Autumn Statement: 4 Key Points for Property Market
UK Chancellor George Osborne has delivered the spending review and Autumn Statement containing the number of topics of interest. We have drafted 4 key points which impact the housing sector:
- In respect of purchasing a property for letting an additional rate of Stamp Duty of 3% will be charged on purchases of properties (above £40,000)
- A digital tax administration system is conceived to be introduced so that landlords (among other taxpayers) will make a quarterly return to HMRC of their property income and expenditure.
- At present mortgage interest on buy to let properties for individuals is wholly deductible from the income from the property for tax payable purposes. Effectively if a landlord is paying a rate of income tax above the basic tax band they get tax relief at the higher rate. This will be amended so that relief will be given on the basic rate of tax only.
- In April 2016 the government proposes to stop allowing a reduction of 10% of the rent receivable from the income for Wear and Tear, but going forward to allow the replacement cost of furniture fixtures and fittings.
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