Yesterday (6th April 2017) marked the start of a new financial tax year, so we’ve decided to have a look at what changes will be coming into effect from yesterday and how they could affect the property industry and your business.
The new lifetime ISA which came into effect yesterday, is designed to help first time buyers saving for a home or people saving for retirement. Those saving into the ISA will benefit from a 25% top up on their savings from the government. The ISA is only available to those aged between 18-39 and allows you to save up to £4,000 a year to gain a bonus of £1,000 on top, which can be used to buy a property up to the value of £450,000 or be withdrawn after the age of 60, tax free.
Buy to let tax relief
The government is phasing out the higher-rate tax relief on mortgage interest over the next four years, with buy to let landlords facing new limits on tax relief on their mortgage interest. This will result in a cut for those who receive the tax relief of up to 20%, which is likely to reduce landlords’ profits.
Family home allowance inheritance tax
The new allowance means individuals can now claim an additional allowance of up to £100,000 per person, when a property is left to a direct descendant. Under this new allowance, those with direct descendants, such as children and grandchildren will get £100,000 tax-free against the value of their property, on top of the existing £325,000 allowance already in place.
National living wage
All workers over the age of 24 will benefit from a 4% pay rise as the National Living wage has risen from £7.20 an hour to £7.50.
Gender pay gap reporting rules
If there are over 250 members of staff employed at your business, you will now have to present the pay differences between men and women on your website, as well as on a central government site. This data must include the hourly pay, bonus averages, proportion of men and women receiving bonuses and the proportion of men and women in the best and worst paying roles.