Great News for Buy-to-Let Landlords in Preston, Leyland and Chorley – Mini Budget

Kwasi Kwarteng’s mini-budget means buy-to-let investors stand to save thousands of pounds. The changes to stamp duty, corporation and dividend tax will have an immediately beneficial effect on landlords’ profits.

The increase in the nil-rate threshold for stamp-duty tax from £125,000 to £250,000 will reduce the stamp duty payable on a £250,000 property from £10,000 to £7,500.

In addition to this the reversal of the planned 25% corporation tax rise means that landlords who own their properties through a limited company could potentially save tens of thousands of pounds. An incorporated landlord who makes £250,000 in rental profits will save £15,000 a year in corporation tax as the rate will remain at 19%.

The reversal of the 1.25% dividend tax rise also means that any dividends that are taken from companies will also be at lower rates.

The basic rate tax cut will benefit accidental and smaller landlords and the abolition of the “additional” rate of income tax at 45% will benefit landlords with a high rental income.

This mini-budget has given landlords the best tax break they have received in years and may even be enough to slow the exodus of landlords from the buy-to-let market.

If you are a landlord in Preston, Chorley, Leyland or the surrounding areas and have any questions about renting out property then please do give us a call on 01772 284606 to speak with our letting specialists and we will be delighted to discuss it with you.