Could new rental tax changes do more harm than good?
Rental tax is widely discussed all over the country, and the team at G Herbert Banks are certainly no stranger to the topic either. Based in Worcestershire, we are leading Worcester letting agents and proudly offer our services to meet the demands of a wide range of client requirements. We can Let and manage residential, agricultural and commercial properties all over the region, offering bespoke package services to fit your individual needs – and all at extremely competitive rates.
Lettings Services Worcester
As well-established estate agents in Worcester, our lettings and property management services are proudly delivered to the highest of standards. By offering specially tailored solutions, we can meet a diverse range of demands on both small and large scales using our highly qualified and experienced team of professionals. No stone is left unturned with our services, we carry out extensive tenant assessments on all new tenants alongside organising the issuing of high standard inventories. With the option of a Let-Only service or a Fully Managed service, Landlords can reap the money-saving and time-saving benefits that our company can offer in no time. Legislation for residential lettings and rental income tax is always undergoing changes so it is important to always ensure you are following correct protocol – by using one of our experts, you can rest easy knowing your property is being properly managed at all times.
Rental tax new proposals
New rental tax plans have been proposed in an attempt to prevent people taking advantage of the ‘Rent A Room’ tax-free income that can be earned by Landlords. Currently, ‘Rent A Room’ relief can provide people with up to £7,500 tax-free income if they rent out a room or rooms in their main residential property. This type of scheme can benefit many different people, from those who simply have a spare room, to people who are renting out their rooms whilst they are not occupying it. However, the Government have recently proposed abolishing or substantially amending the relief by introducing a ‘shared occupancy test’. The implementation of this strategy would mean the tax-free income could only be claimed if the official Landlord was also living at the property during the rental period for the room/s.
What does this mean for landlords?
The Association of Accounting Technicians have said these plans could potentially end the tax break for those renting out their rooms or properties whilst they are away. This could also discourage those who want to buy a house with the hope of using the tax relief on buy to let scheme. These proposed plans will not come into force until next year, however it is hoped that the plans will be dropped by then and that the break will be allowed to continue as it has done for the last 25 years.
Contact G Herbert Banks
If you are interested in finding out more about our rental or lettings service which we can offer, then you can visit our website today. Alternatively, call 01299 896968 to speak to a member of our helpful and friendly team.
If you have found this blog helpful you may wish to read our previous blog on Rental Properties.
20 August 2018< Back to news