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The NLA has submitted its recommendations for consideration following the Autumn Budget date announcement.
The National Landlords Association’s recommendations for the Autumn Budget are largely focused on two areas, supporting investment and addressing disparity.
Firstly, the NLA recommends that the government begin an immediate review of the decision to remove finance cost relief for private landlords. There was also the suggestion to introduce a package of Capital Gains Tax reduction measures aiming to encourage the sale of badly performing investment properties as well as properties where the proceeds of the sale will be completely reinvested into the lettings business. It will also target properties which are invested in and utilised for a period of over 10 years and properties that are eligible and suitable for sale to already existing tenants.
The NLA has also suggested that the Autumn Budget introduce measures to facilitate the tax-efficient movement of a letting portfolio into a corporate structure. It is also floating the idea of establishing a Government-backed investment vehicle to facilitate the sale of properties into a managed fund. It wants to reintroduce the Landlords’ Energy Saving Allowance (LESA) and establish a level which will improve the tax efficiency of carrying out relevant works.
There is a strong focus on Capital Gains Tax and the NLA has called for the surcharge for property sales to be removed. Instead it calls for the introduction of Capital Gains Tax tapering and business asset rollover relief for private residential property which is rented out. Finally, it also calls for the Stamp Duty Land Tax (SDLT) levied on extra properties to be abolished.
Policy and Public Affairs Manager at the NLA, Meera Chindooroy, says: ‘We believe the Government needs to consider the implications of the policies they have introduced in recent years. Already we have seen landlords start to sell property, which only serves to limit the amount of choice available to renters and continue to make housing unaffordable. Landlords are running a business, but the Government refuses to acknowledge that and treat them appropriately. If they want landlords to continue to provide homes, and fill the gap in social housing, they need to properly incentivise landlords to remain in business.’