Big Changes to Property Tax – what do the new rules and rates mean?
It’s fair to say that there have been a lot of changes to tax rules relating to rental properties. In fact, tax has been quoted as the single major reason for landlords quitting the market. In fact, there have been so many changes that we thought we’d take a few minutes to review the landscape in terms of tax and what might be coming next for the Private Rented Sector. Starting from the very beginning, for landlords looking to enter the market by buying second properties (rather than those who have become accidental landlords through, say, inheritance) there is the Land and Building Transaction Tax (LBTT) – a 3% levy on the purchase of second homes. Originally designed to increase the amount of housing stock available for new buyers by discouraging landlords buying additional properties, the jury is still very much out on whether the LBTT is having the desired effect of increasing the number of properties available for owner occupiers. What about tax on rental incomes