How Landlords Are Affected By 2015 Pre-Election Budget

How Landlords Are Affected By 2015 Pre-Election Budget

During the pre-election budget last week, Chancellor of the Exchequer, George Osborne MP announced some significant changes that could have a detrimental impact on landlords the UK’s private rental sector (PRS) and residential property owners.

Below are the highlights of the pre-election budget that are of relevance to landlords and property owners:

• £13 Billion (GBP) sale announced of the mortgages of UKAR – Northern Rock and Bradford and Bingley (Mortgage Express) to reduce national debt which followed the bailing out of the banks.
• Introduction of 20 new housing zones.
• The economy of the North grew faster than the South during 2014.
• The UK has the highest rate of employment in its history!
  Employment is growing fastest in the North West, Yorkshire having the biggest employment.
• Living standards are higher in 2015 than 2010.
• Inflation forecast downgraded to 0.2%.
• Low interest rates to be “locked in”.
• Original target of debt reduction set in 2010 budget has been met.
• 13 years of rising national debt has now been stopped.
• UK achieved the largest and most sustained debt reduction of any major economy according to the IMF.
• Government borrowing is falling.
• The wealthy are making the biggest contributions to reduce debt.
• End of austerity in 2019.
• The annual tax return is to be abolished. New digital tax accounts to be created.
• The personal tax free allowance has been raised to £10,600 (GBP) and will be raised to £11,000 (GBP) in 2017.
• The higher rate tax threshold will rise to £43,300 (GBP) by 2018.
• Class 2 national insurance contributions abolished for self-employed.
• Stronger measures against tax avoidance and tax evasion.
• Review of avoidance of inheritance tax through deeds of variation.
• New penalties for tax evasion and those professionals who assist them.
• Crime down 20%.

There was some good news contained in the 2015 pre-election budget too: