The new chancellor, Jeremy Hunt gave his frst Autumn Statement on 17 November. The budget included tax increases and spending cuts aimed at filling the £55 billion black hole in finances. But when it comes to the detail, what does the statement mean for London landlords?
The Landlord Today website lists some of the changes which might affect people who rent out property in the capital.
The increase to the stamp duty threshold, announced by the previous chancellor Kwasi Kwarteng in his mini budget, will now be time-limited, ending on 31 March 2025.
Capital Gains Tax
The annual exemption will be reduced from the currently level of £12,300 to £6,000 in 2023/24 and to £3,000 in 2024/25, affecting landlords planning to sell a rental property or second home. The tax is already charged at a higher rate for residential property than other assets.
For landlords who rent property through a limited company, the dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
Local authorities will be allowed to raise council tax by five per cent, without holding a referendum, adding to costs for private tenants – or HMO landlords who pay the tax. It is predicted that average band D bills are expected to rise above £2,000 a year.
According to industry body, the National Residential Landlords Association, the budget failed to address pressure on the private rental sector. Ben Beadle, chief executive said: “The government has yet again failed to recognise the potential for housing to drive growth and deliver for the economy. The chancellor should have focused on boosting supply by ending the stamp duty levy on the purchase of new rental homes.”