07/06/2024
General election on 4 July 2024: What does this mean for property landlords?
The Prime Minister, Rishi Sunak, has called a general election for 4 July 2024. It is worth considering what the general election means for property landlords.
The biggest implications will be for those who own furnished holiday lets (FHLs). In the Spring Budget 2024, the Chancellor announced that the special tax regime for FHL will be abolished from 6 April 2025. To date, no further details have been provided. In the short-term, it is likely that we will not see any further detail from HMRC before 4 July, because the announcement of the general election has triggered a six week ‘ period of sensitivity'(previously known as ‘purdah’), during which government departments must refrain from making any politically sensitive announcements.
The other, and possibly the most crucial question, concerns whether a labour government would proceed with the plan to abolish the FHL regime. To date, Labour have not commented on the plans, so we cannot be certain, but as the abolition was originally suggested in a report by the now defunct Office of Tax Simplification, it is likely that a Labour Government would also look to abolish the FHL regime. Labour may also consider reintroducing the Renters (Reform) bill if they win the election. The bill, which would ban landlords from evicting tenants without reason, was postponed by the Conservative party and was not passed as law before parliament was dissolved on 30 May.
Please contact 023 8046 1254 or email Tom Young if you would like more information on the above.
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