42 property
Tax issues for the residential landlord
The Budget dust may have settled but the impact on residential landlords will roll on for some time to come. That is the verdict of specialist tax adviser Alan Rolfe of accountants HWB
“The greatest impact on residential landlords will come from the restriction of tax relief for mortgage interest from April 2017, although other changes are imminent,” he said. “The changes look set to hamper the buy-to-let market and landlords need to be aware of the implications of recent tax changes.
The Residential Landlords' Association has conducted a survey which found that more than 60 % of landlords paying the standard rate of income tax believed the changes would push them into the higher rate bracket, despite having no increase in their income. It is therefore important for
residential landlords to start planning now for the mortgage interest tax relief change.
“From April 2017 and phased in over four years, tax relief for interest and finance costs will be restricted,” said Mr Rolfe. “The restriction is not a simple reduction in tax rate but a change from a deduction of interest to a relief which reduces the tax payable. This can result in income taxable at higher rates than before.”
Another change affecting the residential landlord is the abolition of the wear and tear allowance which took effect in April this year.
“Where a residential property was let out on a furnished basis, rather than claiming for the actual spend, landlords could deduct the Wear and Tear Allowance from their taxable rental income to cover the expense of replacing furnishings,” said Rolfe. “This wear and tear allowance is calculated as 10% of the relevant rental income.”
However, from April 6 the wear and tear allowance was replaced with a new relief available to all residential landlords, whether the property is furnished or unfurnished, and based on the actual cost of replacing furnishings.
University receives keys to new building
Southampton Solent University has been handed the keys to its new £33 million campus building, The Spark.
Designed by Scott Brownrigg and constructed by Interserve, the new building provides 40 new learning spaces with specially designed audio-visual and teaching technology.
A new addition to East Park Terrace in the heart of the city, The Spark will play a major role in helping the University continue to deliver the best learning experience for staff, students and the wider community.
Steve Carter, Southampton Solent University's chief financial and operating officer who led the project was handed the keys by Cliff Kinch, regional construction manager at Interserve, who said: “It is exciting to see the Spark come to life and Interserve is proud to have been the construction partner in the delivery of such an important and iconic city centre development. We know that the quality of the design and construction will inspire students and staff to achieve great things and
businessmag.co.uk
“The impact of the removal of the wear and tear allowance will be keenly felt by landlords of furnished properties, such as student accommodation.” said Rolfe.
For more information contact Alan Rolfe.
Alan Rolfe
alan.rolfe@
hwb-accountants.com 023-8046-1235
further establish the University as a leading education provider.”
The Spark's stunning 60m central atrium and dramatic elevated ‘pod' has already caught the imagination of the building and education sectors, as well as passers- by. Designed and built by CIG Architecture in the Netherlands, the pod hosts a lecture theatre with an open-topped viewing platform with fantastic views.
Businesses and community groups will also be able to benefit from the building's futuristic and flexible facilities. In addition to the ‘pod' and semi-public atrium that will be available for events – from trade shows to fashion shows, art exhibitions to networking events – The Spark also features two large flexible suites, a bookable business centre and a new VIP dining area.
Students will be using the new building and its facilities from the start of the 2016 academic year, this September.
This latest addition to the University's city centre campus is part of a £100 million campus development plan, due for completion in 2020, which will include a new sports centre.
THE BUSINESS MAGAZINE – SOLENT & SOUTH COAST – JULY/AUGUST 2016
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