The Chancellor said today in his Budget speech that an extra 2% tax will be levied on landlords’ profits from April 2027. This is on top of the 2% levied by Rach from Accounts announced in the last budget. Landlords will therefore be taxed at 24%, 44% or 49% depending on their circumstances. What the set off for loan interest will amount to isn’t clear at this stage but it certainly is another nail in the private rented sector.
Oh, and if you have any spare cash and you receive interest on deposits, the extra 2% applies to that as well.
The OBR (Office for Budget Responsibility), an independent voice, has warned that the measures risk driving landlords out of the market and pushing rents higher for tenants. In other words, they’re stupid, counterproductive measures.
