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Landlords Alert: full details of Budget 2021 proposals

This afternoon's Budget has seen dramatic announcements from Chancellor Rishi Sunak referring to the private rental sector.

For landlords buying properties, the stamp duty holiday on properties up to £500,000 will be extended from March 31 to June 30; from July 1, the holiday will apply only on properties up to £250,000 until the end of September. It will not be until October 1 that the pre-Covid stamp duty thresholds and levels will resume.

However, for purchases from the start of July until the end of September the maximum SDLT saving will be just £2,500 - sizeably less than the £15,000 saving possible under the current holiday, which continues until the end of June. So far no details have been released on whether these dates will end with the hated 'cliff edge' or will be tapered to avoid a last minute disappointment for some buyers.


But landlords who have incorporated as well as letting agency businesses will be disappointed to know that Corporation Tax is to soar from 19 per cent to 25 per cent from April 2023. There will be changes to how it is applied, especially for smaller companies, but this is likely to affect the trend towards buy to let investors incorporating.

There has been no announcement on Capital Gains Tax, prompting speculation this will be the subject of extensive consultation on radical changes, beginning on March 23 with the release of so-called 'tax day' proposals.

Meanwhile Chancellor Sunak has also confirmed that there will be government-guaranteed 95 per cent mortgage loans available for buyers from next month, on the purchase of properties up to the value of £600,000; however, this is thought not to apply to investment purchases.

There is additional good news for most letting agencies: Sunak also says there will be a 100 per cent business rates holiday until the end of June; thereafter business rates will be discounted by two thirds up to a maximum of £2m for larger businesses.

Other measures announced today include: 

- Furlough to be extended until the end of September, with higher employer contibutions from July;

- 600,000 more self-employed people will be eligible for help as access to grants will be broadened;

- £20 uplift in Universal Credit to be extended for another six months;

- Minimum wage to increase to £8.91 an hour from April;

- No changes to rates of income tax, national insurance or VAT BUT...thresholds to be frozen, meaning long-term 'stealth taxes';

- Personal income tax allowance to be frozen at £12,570 from 2022 to 2026;

- Higher rate income tax threshold to be frozen at £50,270 from 2022 to 2026;

- Corporation tax on company profits to soar from 19 to 25 per cent in April 2023, although some relief for smaller companies; 

- Apprenticeship grants to rise to £3,000;

- VAT reduced for hospitality firms to be maintained at five per cent until September;

- Interim 12.5 VAT rate to apply to hospitality thereafter, to the hospitality sector, for the following six months;

- Business rates holiday for firms in England will continue from April until June;

- No rise this year in fuel or alcohol duties;

- Re-opening grants for non-essential businesses of up to £6,000 for most premises, and £18,000 in exceptional circumstances;

- Another £400m to help arts venues in England to reopen and £300m for professional sport and £25m for grassroots football to reopen;

- An additional £19m for domestic violence programmes and £40m for Thalidomide victims;

- If you have questions about the Budget, why not see if you can ask Sunak himself? He's staging a news conference at 5pm and you can submit questions at gov.uk/ask 

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon

    And not Jack Sh*t about helping LL with owed rent arrears!

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    • 03 March 2021 14:43 PM

    Looks like lot of financial support being given. I wonder where they will get the money?

    Franklin I

    From the likes of us LL's Kilo Charlie!


    Massive 31% increase in corporation tax , fiscal drag by freezing personnal tax allowances for several years. The pips are being squeezed...

  • icon

    Haven't we got our own Bank, we are not tied to another Currency they used to print it, now no need just press the button on their own Computer.

  • Franklin I

    As LL's switch from individual BTL ownership/mortgages and start trending towards Limited Company mortgages, they decide to increase the tax on that one, from 19% to 25% by 2023.

    I've no doubt, that by 2023 they'll increase that from 25% again!


    I always thought incorporation could be dodgy as you have to pay tax on dividends as well as profits, so double taxation already higher than for unincorporated LL and nothing to stop them increasing the relatively low CT rates, making the effective tax rate even higher.

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    • 03 March 2021 15:06 PM

    As usual the system/new budget protecting the lazy low class parasites.

  • George Dawes

    I’m very happy with it , particularly the biz rates reduction and the new recovery loan

    I can see rishi as the next pm , certainly better than that blithering blonde oaf

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    OK he is extending Stamp Duty Holiday £500k from 31st March to 30th June '21 then continuing at the reduced amount of £250k from 1st July until 30th September '21. He must have forgotten about the Capital, what can yo but in London for £250k not very much even the one bed Flats are considerable more, should be higher threshold for London. I know you can get a House in other regions for £250.
    We'll have to wait until 23rd March to get hammered with Capital Gains he didn't want to spoil his day.

  • icon

    I keep hearing about Stamp Duty Holiday but there is no such thing for LL's and never was its the biggest con ever, just because George Osborne doubled it, say if you were buying a property before that as example £500k property (probably a Flat in Acton certainly not a house) you were paying £15'000.00 stamp duty already a significant amount, then Osborne doubled it £30'000.00 Stamp Duty then Rishi comes comes along and halves it temporary, there you go magic you made a massive savings of £15'000'00 who on earth are they kidding, why don't they just grow up. £30'000.00 SDLT non starter for BTL Flat, add you Deposit all the other charges, monthly repayments, maybe Section 24 for individual LL, rent not guaranteed, vacant periods, possibly Licensing encumbrances & requirements of every recent kind, where is the beef.


    Agreed, I can't imagine how anybody could get into that market these days unless they see substantial capital gains and/or extortionate rent opportunities, or buy the land and build to rent.

  • icon

    Material Costs & labour is so expensive those days, then the land and thousands of pounds Council Fee as a one off doesn't work i think.
    All this interference and manipulating the Market is not good, say those young people that are enticed and given financial advantage to buy those over priced Flats, then if they want to sell and unlikely any Capital growth in this climate, the next buyer will be buying a secondhand home that most likely has not gone up in value (even down) the next buyer will have to find the extra thousands of £'s Stamp Duty for the purchase, so he will have to knock the seller hence he is not getting his money back, you can apply same for to BTL.


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