Budget’s silver lining for landlords?
Monday 27 November 2017
Despite a budget that’s been widely held as underwhelming by property experts and landlord groups, Chancellor Phillip Hammond did make one announcement relating directly to landlords that could spell good news...
Tax computations for unincorporated property businesses that choose to use mileage rates are set to be simplified.
The measure allows landlords the choice to use fixed rates per business mile to calculate their allowable deductions for motoring expenses, instead of deducting actual running costs and claiming capital allowances.
However, it will not be available to landlords who are companies or in mixed partnerships, that is a partnership with both individual and non-individual members.
“The really good news from the budget is no more bad news,” says Alex Huntley, Head of Operations at Simple Landlords Insurance. “After so many negative changes in recent years, landlords can see this budget - and the mileage rates - as a bit of a break.”
Andrew Turner, chief executive of brokerage Commercial Trust Limited, adds: “After a challenging couple of years, many buy-to-let landlords will be relieved to have the breathing space that this budget affords them. It hopefully goes some way to building confidence.”
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