A spring statement and what’s to come for the new Tax year
So the 2018-19 tax year is now coming to a close, and with that we see some changes that are significant for landlords. Most significantly, in 2019 we enter the third phase of the “withdrawal of mortgage interest as an allowable expense”. For the 2018/19 return, landlords can deduct half of mortgage interest payments as an allowance, the remaining half is subject to tax relief at 20%.
As of April 2019, all lettings agents are required to obtain Client Money Protection, an insurance that protects landlord and tenant monies in circumstances where agencies fail.
Also, April 2019 sees changes made to the Energy Efficiency Regulations of 2015, and Minimum Energy Efficiency Standards will now dictate that landlords will be expected to contribute up to £3,500 (per property) to raise a property’s EPC rating up to the minimum of E – where the cost is greater, landlords may register a high-cost exemption.
Talking of energy and efficiency, in the Chancellor’s Spring Statement there was a focus on future proofing new-build homes with low carbon heating – including banning gas boilers in new homes by 2025. £3billion has been allocated for an “affordable homes guarantee scheme” – set to deliver 30,000 new homes.