The National Landlords’ Association (NLA) is making representations to HM Treasury ahead of the Budget to make the Government aware of the serious issues currently facing the UK’s Private Rented Sector (PRS) and their impact on housing.
The Chancellor of the Exchequer, Philip Hammond, has announced that the government will publish its Autumn Budget on Wednesday 22 November 2017.
The Autumn Budget sets out the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR).
Following the Chancellor’s announcement at Autumn Statement 2016, there will now only be one fiscal event in each year, held in the Autumn. From 2018 there will be a Spring Statement, responding to the forecast from the OBR, but no major fiscal event.
The focus of the Associations representations was to ensure that fiscal and economic policy better supports investment in private rented property and that sufficient funding is allocated to facilitate the implementation of the Homelessness Reduction Act.
One main NLA request is a call to introduce a package of “Capital Gains Tax reduction” measures. This, argues the landlords’ association, is to encourage the sale of poorly performing investment properties – properties where the proceeds of the sale will be entirely reinvested back into the lettings business, properties invested in, and utilised, for a period of more than 10 years, and properties that are eligible and suitable for sale to existing tenants.
In summary it makes the following recommendations:
- Embark on an immediate review of the removal of finance cost relief for private landlords.
- Introduce a package of Capital Gains Tax reduction measures to encourage the sale of:
- Poorly performing investment properties.
- Properties where the proceeds of the sale will be entirely reinvested into the lettings business.
- Properties invested in, and utilised, for a period of more than 10 years.
- Properties that are eligible and suitable for sale to existing tenants.
- Introduce measures to facilitate the tax-efficient movement of a letting portfolio into a corporate structure.
- Establish a government-backed investment vehicle to allow the sale of properties into a managed fund.
- Reintroduce the Landlords’ Energy Saving Allowance (LESA), and establish a level sufficient to improve the tax efficiency of carrying out relevant works.
- Set LESA at a level sufficient to improve the tax efficiency of carrying out works
- Fund the expansion of Help to Rent nationwide
- Establish a national deposit guarantee scheme for the private rented sector
- Remove the Capital Gains Tax surcharge for property sales
- Introduce Capital Gains Tax tapering and business asset rollover relief for private residential property which is let.
- Abolish the Stamp Duty Land Tax levy on additional property
See the full submission here