"The rumours as we approach the announcement certainly seem to reflect that ambition. Among them are a few that business owners may wish to look out for, including: the concept of a new class of National Insurance contributions which would be taxed on rental income; "secondary" NIC-style contributions on partnership profits; the alignment of Capital Gains Tax with Income Tax, and an exit tax on unrealised gains for departing residents."
"Equalising opportunities: NICs, partnerships and rental income One proposal that seems to be gaining traction is a new NIC bracket that could be applied to rental income. If it comes to pass, this could effectively translate to treating landlords more like employees- from a taxation perspective, at least. The idea is to level the playing field by equalising tax treatment across income sources, with a proposed investment allowance to protect smaller landlords."
Mounting fiscal pressure and strained public finances are prompting consideration of further belt-tightening ahead of the Autumn Budget. Economists at Oxford Economics estimate the fiscal shortfall has widened by a further 50%, possibly peaking near £30 billion. Possible measures include a new class of National Insurance contributions taxed on rental income, "secondary" NIC-style charges on partnership profits, alignment of Capital Gains Tax with Income Tax, and an exit tax on unrealised gains for departing residents. Other options include changes to inheritance tax, higher levies on property wealth, and duty increases. A proposed investment allowance could protect smaller landlords, but critics warn landlords may pass costs to tenants.
Read at London Business News | Londonlovesbusiness.com
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