Chancellor Jeremy Hunt is set to make some key announcements on Wednesday 6th March that could shape the property market’s future. The Landlords Insurance team at Lansdown have summarised the top five things to keep an eye on ahead of the upcoming Spring Budget statement.
Inheritance Tax Shake-up?
There are talks around reforming or scrapping inheritance tax, currently set at 40% on estates over £325,000. Critics question changes during a cost-of-living crisis, but proponents argue for updates given stagnant rates and rising house prices. Landlords should watch closely, as alterations might influence property decisions and portfolio management.
Pre-Election Tax Cuts?
Rumours abound regarding potential tax cuts before the upcoming general election. While the International Monetary Fund suggests prioritising public spending recovery, Chancellor Hunt is keen to “lighten the tax burden”. A 2% income tax cut is speculated, bringing potential savings of £448-£948 p.a. for various income brackets, offering relief for taxpayers and possibly lightening the financial burden for landlords.
First-Time Buyer Mortgage Scheme:
Could a new scheme with a 1% deposit requirement be on the horizon? If so, it might boost first-time buyers but also affect the rental market. Landlords may face reduced tenant demand and increased competition in a more expensive housing market.
Stamp Duty Surcharge:
Calls to suspend or scrap the 3% stamp duty surcharge on second homes are gaining momentum. If implemented, this could encourage more buy-to-let investments, potentially alleviating the rental housing shortage and benefiting the government’s tax revenue.
Reversing Section 24 Tax Changes:
Propertymark is pushing for a reversal of Section 24 tax changes, limiting landlords’ ability to claim mortgage interest costs. This move aims to encourage investment in the rental market and motivate landlords to enhance their properties.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlords Insurance, Block of Flats Insurance and Home Insurance. We can provide flexible policies to suit individual client needs and provide advice on what cover is needed. For more information call the team on 01242 524498.
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