spring budget 2017
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Latest property news
Government consults on closing Rent-a-Room loophole for Airbnb hosts
All eyes on are on Philip Hammond as he battles to save his National Insurance Contributions tax increases for the self-employed following a back-bench revolt on the measures, which were announced in Wednesdays Spring Budget. But while the political football continues today, a measure designed to stop the rise of Airbnb has been slipped through in the detail of his recent budget statement. The government is to consult on proposals to reformulate the Rent-a-Room relief. It’s a measure introduced in 2014 that enables home owners to earn up to £7,500 a year tax-free from letting out furnished accommodation within their home. This was increased recently from £4,250. Airbnb hosts have taken advantage of this loophole which now makes using Airbnb doubly attractive, and has persuaded many landlords to rent their homes out via the website, rather than using traditional letting agents. Research for The Negotiator by consultancy Airdna reveals that, in London, the number of properties listed to rent out via Airbnb has risen from 22,945 in January 2015 to over 60,214 today, an increase of 162%. Airdna also says Airbnb properties have an average occupancy rate of 60% and that average revenues for Airbnb hosts in London are all…
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Latest property news
Spring Budget 2017: stunned industry wonders where the property went
Chancellor of the Exchequer Philip Hammond delivered a Spring Budget 2017 totally devoid of any help for the UK’s struggling housing market. It also failed to lessen or backtrack on recent Stamp Duty hikes for landlords or the lettings fees ban. The only palpable good news for agents includes a mooted extra tax for digital-only businesses to level the playing fields with their high-street competitors – something for agents facing competition from online-only and hybrid ones. Corporation tax Other business benefits within the budget include a reduction of corporation tax from 19% to 17% by 2020 and that businesses with turnovers below the VAT threshold will be given a year’s grace before having to start quarterly digital reporting. Business rates But for the industry’s 20,000 branches, a much-hoped-for reform of the business rates system did not materialise as major hikes loom for many high-street operators. Instead, and in order to see off a potential Tory rebellion, the Chancellor announced a fighting fund of £435m to help soften the blow. This will include a £300m discretionary fund to be shared out by councils to businesses least able to take the rates hit. Hammond also pledged that no business losing its small…
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