The Budget ~ What does it mean for landlords?

The Chancellor, George Osborne, delivered the Coalition Government's first budget on Tuesday.

Local Housing Allowance (LHA) payments to be cut

Benefit claimants bore the brunt of cuts with Government seeking to save £1.8bn a year from Housing Benefit:

• Maximum awards payable will be capped from April 2011
• Payments will be reduced from October 2011
• Individual awards will be cut by 10% for people who claim Jobseekers Allowance for 12 months or more, from April 2013

Capital Gains Tax (CGT) to rise to 28% for high earners

The rise in CGT was not as high as feared, increasing from 18% to 28% for higher and additional rate taxpayers:

• CGT rates aligned more closely with income tax rates
• New 28% rate for high earners from 23 June 2010
• Rate remains 18% for basic rate taxpayers

Disappointingly the Chancellor failed to recognise the distinction between long-term investment and short-term speculation.

VAT is to increase to 20% from 4 January 2011, giving landlords the chance to purchase items or carry out work before prices increase.

The Budget also included measures affecting Furnished Holiday Lets, Corporation Tax, help for small businesses and 'Green Loans' repayable from energy savings, to incentivize energy efficiency measures.