Maxine was joined today by Toni Hunter from George Hay Accountants to discuss all things Budget 2021 and the financial impact of the pandemic on Landlords. If you missed it, you can join our Facebook group for landlords where you can watch the full recording from the live event here and get fantastic local insight from an expert, completely free.
But without further ado, let’s take a look at the Chancellor’s plans, and the impact they will have on the housing market.
Here are just a couple of the key points covered in the live session:
The extension gives some finality, and allows those currently caught up in chains to breathe a little bit easier safe in the knowledge that they should be able to complete before the deadline. For others looking to buy, it allows them to budget for the possibility of having to pay stamp duty if deadlines aren’t met. The market is saturated from a professional services point of view, and mortgage brokers and conveyancers are likely to be more realistic about meeting deadlines.
An average 3 bed home in the Cambridge area costs 270,000. If the sale goes through before June, the only stamp duty paid by investors will be around 8,000, if the sale goes through after October 1st then the stamp duty will be around 11,000.
This could really boost the property market in the local area. It’s not just for first time buyers, it’s for anyone and it applies to all properties – not just new builds.
This added demand could keep local prices buoyant, with more people looking to buy property. Especially with an influx of those looking to move out of London which, as we know is on the rise.
Toni and Maxine also spoke about the local area, the percentage of tenants affected by furlough or Universal Credit, the local jobs market, how businesses in Huntingdon and St Ives have been coping with the lockdowns, whether or not you should be looking to add your portfolio to a Ltd company with upcoming Corporation Tax increases, how Bounce Back Loans are viewed by mortgage lenders, and how businesses should be making plans for the tax hike so they don’t get caught out.
To learn more about all of this, come and join us on our Landlords group, where you can ask questions, get notified of our upcoming live sessions, and watch through our back catalogue (some may say goldmine) of unrivalled local insight.
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Landlords - don't get caught out!
Although this isn’t something new in the budget, Toni points out a real problem for many landlords at the moment who don’t realise that when selling a property, they need to settle up their Capital Gains Tax within 30 days.
Being late with this will incur fines, so for Landlords who don’t realise until submitting their return in January this could be a costly mistake!
It’s also important to note that this cannot be done by an accountant alone. You have to register an account first, and then give an agent permission to complete it for you, as Toni puts it “It’s a team effort.”
For more information on CGT obligations, visit the George Hay website here.
Thank you to Toni Hunter for her fantastic local insights, for more insights, download a copy of a Key Note Summary of the Spring Budget 2021 from George Hay’s website here: