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BUDGET: What can landlords expect from the Chancellor this week?

capital gains tax

Landlords will be looking for more government support to make energy efficiency improvements while hoping for some tax burden relief in the upcoming Budget.

With EPC deadlines looming, many want greater incentives to back up the Boiler Upgrade Scheme, something the NRLA is calling for, as well as pro-growth tax measures and a full assessment of tenant support options including Discretionary Housing Payments to prevent a potential landlord exodus.

Like Propertymark it hopes Chancellor Jeremy Hunt will announce a reversal of the freeze on Local Housing Allowances rates which the agents'� body says should be re-aligned to at least the 30th percentile '� or even the 50th - of comparable local rents, with a government commitment to maintaining rates at market rents.

It has been nearly three years since housing benefit last increased and a reversal would help landlords with Universal Credit tenants.

Repeal Section 24?

There have been repeated calls from landlord groups for the government to repeal Section 24 to reintroduce mortgage interest relief and other tax deductibles for landlords '� although it'�s doubtful this is being considered.

However, there is also concern that the Chancellor could raise stamp duty for landlords; since 2016-17, government figures show the surcharge has raised �10.1 billion for HMRC and, in the 2021-22 tax year, a whopping 46% of all stamp duty receipts came from buyers who were liable to pay the extra 3% on top of their normal stamp duty, according to The Times.

There probably won'�t be any more news on capital gains tax rates which have remained the same since 2017, after Hunt announced in the autumn Budget that the annual exemption would reduce from �12,300 to �6,000 in April, and then to �3,000 next year.

Other possible changes affecting landlords are a rise in the state pension age to 68, effective from the mid-2030s and an increase in the pensions Lifetime Allowance, allowing them to save more before starting to pay tax.

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