Get free updates - subscribe to our monthly newsletter Subscribe
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.
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.
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.
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.
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.
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.
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW