Property Tax

Key points:

  •  Stamp Duty Land Tax – changes to filing and payment deadlines deferred

At Autumn Statement 2015 the government announced that it would reduce the filing and payment window for Stamp Duty Land Tax from 30 days to 14 days from April 2017.  Following consultation they have decided to delay the reduction in the filing and payment window until April 2018.


Key points:

  •   Rent-a-room relief consultation
  • Rent-a-room relief consultation

The government intends to consult on proposals to redesign the existing ‘rent-a-room’ relief to ensure it is better targeted to support long-term lettings.   The relief currently exempts income from letting furnished accommodation in your own home, up to a maximum of £7,500. The consultation intends to align this relief more closely with increasing the supply of long-term affordable lodgings.


Key points:

  •   Making Tax Digital – deferment of quarterly accounting for some landlords

Unincorporated businesses and landlords with a turnover below the VAT threshold will now have a further year, until April 2019, before they are required to keep records digitally and submit quarterly updates.  This will provide more time to prepare.

Key points:

  •  Tax simplification – Cash basis

Following consultation, the government will extend the use of cash basis to unincorporated landlords and will increase the entry threshold for income to £150,000, and exit threshold to £300,000.  They will also simplify the rules on capital and revenue expenditure within the cash basis.

Key points:

  •  £1,000 property allowance

As announced at Budget 2016, Finance Bill 2017 will include legislation to introduce a £1,000 allowance for property income which can be deducted from income instead of actual expenses.  The allowance will take effect for the 2017/18 Tax Year.  The taxpayer will have the choice of deducting the allowance from income instead of the actual expenses.   The new allowance will not apply to income from a property business partnership, nor will it apply in addition to Rent-a-room relief.

Key points:

  •  Additional Capital Gains Tax rates and Stamp Duty Land Tax charges remain

Unfortunately the increased rates of Capital Gains Tax and the additional 3% charge to Stamp Duty Land Tax that apply to certain property transactions remain unchanged.



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