In his recent autumn statement, George Osbourne has left us under no illusion of the Government’s commitment to making us all use digital accounts to pay our Tax and other dues to the State. Digital Tax accounts will enable HMRC to know more about our sources of income much earlier than ever before. This will allow HMRC to speed up the collection of Income Tax and Corporation Tax, and the Chancellor has already announced that from April 2019, Capital Gains Tax, payable on disposal of residential property will be payable within thirty days. Further changes are likely, and you will need a modern accounting system which gives near real time information if you are to meet the ever increasing demands of Government.
The Chancellor has continued his assault on Buy-to-Let Landlords, by imposing a three percent additional rate of stamp duty on purchase of all residential properties, other than your principal Private Residence, on all transactions above £40,000, from April 2016. This, coupled with the announcement made in the Summer Budget of the withdrawal of Higher Rate Tax Relief on Buy-to-Let Mortgages from April 2017, will significantly increase the tax liabilities of many Landlords.
So if you are a residential property investor concerned about these changes, then get in touch. We are here to help!