The National Landlords Association (NLA) has submitted some recommendations to HM Treasury ahead of the Autumn Budget statement, which is due to be delivered on Wednesday 22nd November 2017.
NLA Makes Recommendations to Treasury Ahead of Autumn Budget
The focus of the organisation’s recommendations was to ensure that fiscal and economic policy better supports investment in private rental property, and that sufficient funding is allocated to facilitate the implementation of the Homeless Reduction Act.
In summary, it makes the following recommendations:
- Embark on an immediate review of the reduction in tax relief on finance costs for private landlords.
- Introduce a package of Capital Gains Tax (CGT) reduction measures to encourage the sale of: poorly performing investment properties; properties where the proceeds of the sale will be entirely reinvested into the lettings sector; properties invested in and utilised for a period of more than ten years; and properties that are eligible and suitable for sale to existing tenants.
- Introduce measures to facilitate the tax efficient movement of a lettings portfolio into a corporate structure.
- Establish a Government-backed investment vehicle to allow the sale of properties into a managed fund.
- Reintroduce the Landlords’ Energy Saving Allowance (LESA) and establish a level sufficient to improve the tax efficiency of carrying out relevant works.
- Set LESA at a level sufficient to improve the tax efficiency of carrying out works.
- Fund the expansion of Help to Rent nationwide.
- Establish a national deposit guarantee scheme for the private rental sector.
- Remove the CGT surcharge for property sales.
- Introduce CGT tapering and business asset rollover relief for private residential properties that are let.
- Abolish the Stamp Duty surcharge on additional properties.
You can read the NLA’s full submission to the Treasury by clicking here.
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