In the wake of Corporation Tax, National Insurance and Dividend Tax rises – we didn’t expect too much from Wednesday’s budget.
And – perhaps, fortunately – there was indeed little of note for landlords as the reports on IHT and CGT from the Office for Tax Simplification have been left to gather more dust on the shelves of 11 Downing Street. Still, there are some take-aways and I’ve highlighted the key points for landlords below as well as providing some useful links including the full budget summary PDF and yesterday’s webinar recording. Key Takeaways: 1. Making Tax Digital (MTD) has been given another stay of execution. Sole traders and landlords who have an annual income over £10,000 will be given an extra year to prepare for MTD. MTD for self-assessment will now be introduced from 6 April 2024. General partnerships will not be required to join MTD until 6 April 2025. However, we do think this means that quarterly tax payments are on the planning horizon for HMRC – something VAT registered companies reporting quarterly are already doing. 2. For UK residential property sales completing on or after 27 October 2021, the deadline for reporting and paying CGT is increased from 30 days to 60 days 3. No changes to SDLT, CGT or IHT rates 4. New 4% Residential property developer tax on Profits over £25m A new tax will be introduced on company profits derived from UK residential property development. This is to help pay for the removal of unsafe cladding such as that which led to the Grenfell Tower tragedy in 2017. It will be charged on relevant profits arising after 31 March 2022. 5. Useful Links:Full 18-Page Budget Summary from our Accountants (PDF)Tax Rate Cards (PDF)Spring Budget 2021 Summary & Blog Covering Corporation Tax Increase
UK Post-Budget Analysis 70-minute webinar for Property Investors – featuring a 24 minute budget summary from UK Property Journalist Graham Norwood; Graham, Less Tax 4 Landlords’ Chris Bailey and London based estate Agent Benham & Reeves’ Vidhur Mehra discuss the budget