During 2016 Landlords have been hit by a series of legislation changes.
In April the Government announced it would be:-
- Increasing stamp duty for those buying second homes, including buy-to-let properties. Landlords now have to pay a stamp duty surcharge on buy-to-let homes of three percentage points above the previous rates.
- Tax relief on mortgages repayments for Buy to Let properties would be capped at 20%
- The annual 10% Wear and Tear allowance, which was tax free, will now be an allowance on actual spend.
The Government has now introduced new rules which means that Buy-to-let landlords with less energy efficient properties will soon have to fork out up to £5,000 due to changes to ‘the green tax’.
The green tax is a series of measures introduced by the Government to make properties more energy efficient, in a bid to make the UK more environmentally friendly and to save households money on their energy bills. The aim is for properties to have at least a Band E energy efficiency rating.
As from 2018, an estimated 330,000 investors and Landlords will no longer be eligible for loans from the Green Deal scheme to carry out property improvements to boost energy efficiency.
Instead, the proposed changes mean that Landlords will now pay for property improvements such as cavity wall insulation, and the fitting of more efficient boilers.
Ultimately this could then lead to a rise in rents as Landlords try to recoup their expenditure.
For more advice on Buy to let properties and the changes in Government legislation contact our team of experts at Peter Robinson & Co on 0161 678 7996.