Please think carefully Mr Osborne!
Whatever further plans the chancellor has in mind for the PRS there is a train of thought that come 2020 many landlords could be making a loss on their rental returns. This idea is based on changes to mortgage interest tax relief coupled with a series of theoretical rate rises between now and 2020.
There will always be theories and suggestions, although given there are a number of on-line mortgage calculators why not perform your own “stress test” based on theoretical rate rises. The chancellor has targeted landlords and we are yet to see whether more changes lay ahead, we sincerely hope not.
Waltham Forest Landlord Forum
At 6pm on 21st March, in the Council Chambers in Waltham Forest Town Hall, there is a landlord forum. There is no need to book and topics to be covered are:
- Private Rented Property Licensing Update
- Task Force – Launch and Outcome to Date
- Commercial offer to private landlords
- Energy Efficiency & British Gas Boiler Offer
- Responsibilities and procedures for landlords under Right to Rent (Home Office)
ECB benchmark interest rate hits 0%
As reported through Financial Reporter last week, The European Central Bank has from April cut its benchmark interest rate from 0.05% to 0% and will expand its quantitive easing programme.
If, as some suggest, this impacts on the UK base rate it could spell more despair for savers. Rates for fixed rate ISA’s have plummeted although for many there is some good news by way of tax changes to the interest earned on savings.
Basic-rate (20%) taxpayers – will be able to earn £1,000 interest with no tax (so a max tax saving of £200 compared with now).
Higher-rate (40%) taxpayers – will be able to earn £500 interest with no tax (so a max tax saving of £200 compared with now).
Additional-rate (45%) taxpayers: £0 – they do not get an allowance.
From next April 18 – 40 year olds can tap into the new government “lifetime ISA” whereby a max of £4,000 per year can be saved to which the government will add 25%, although according to the Mail on-line, some experts warn this could be a ‘stepping stone’ to abolishing pensions tax relief.