Written on 4 March 2021 by Courtney Manton in Property News
The chancellor Rishi Sunak delivered his latest budget on 3 March 2021 with announcements aimed at “protecting jobs and livelihoods” and measures including an extension of the furlough scheme and a business rates holiday for firms in England.
If you’re a landlord, you might be wondering what was in the budget for you. Here are some of the key takeaways for people renting out property in 2021.
Stamp duty – if you decided to take advantage of the stamp duty holiday to expand your portfolio, and your transaction hasn’t gone through yet, there was good news in the budget. The chancellor has extended the stamp duty holiday until 30 June 2021, with a threshold of £250,000 from then until 30 September – double the normal level. While anyone buying a second home will still need to pay the 3% stamp duty surcharge, the holiday does mean savings for landlords on the standard element of the tax.
Corporation tax – landlords who decided to rent out property through a limited company, could be worse off as a result of the budget because corporation tax will increase from 19% to 25%. However, the change won’t come into force until April 2023 and will be kept at 19% for the 1.5 million small companies with profits of less than £50,000.
Income tax – for everyone else, the rates of income tax and national insurance haven’t increased. However, the personal allowance will be frozen at £12,750 from April 2021 until 2026.
Capital gains tax – following speculation that the capital gains tax rate would be increased to bring it in line with income tax, the chancellor has left it alone – for now – apart from freezing the tax exemption until 2026.
Read more about what was in the 3 March budget on the BBC website.
