In the wake of the election manifestos’ being published, we have taken the liberty of compiling some of the Labour policies around property investment for your consideration:
- Plans to build 100,000 council houses a year, and 50,000 social homes through housing associations – all of them to high environmental standards.
- Private rents would not be allowed to rise by more than inflation.
- Landlords would be fined for letting out sub-standard property. Under the proposed “private renters’ charter”, landlords would face an annual “property MOT”, with fines of up to £100,000 or forced repayment of rent if their properties are found to be sub-standard.
- Plans to bring in “open-ended” tenancies, to protect tenants from unfair evictions. Tenants will only be able to be evicted on tightly defined grounds, such as non-payment of rent or criminal behaviour in the property, or if the landlord plans to move back into the property.
- Renters unions would be given government funding.
- Corporate taxes would increase from their current level of 19% to 21% from April 2020, rising to 26% by 2023. A “small profits rate” would be retained at 19% (rising to 21% by 2023), but this would apply only to firms with turnover below £300,000 – and with profits at a much lower level.
- An efficiency review of corporate tax reliefs would be carried out.
- Research and development credits for large businesses would be abolished.
- The system of taxing multinationals would change to a formula-based apportionment (“unitary tax”)
- Plans for a financial transaction tax.
- Entrepreneurs’ relief, which gives a 10% rate of capital gains tax on up to £10m raised from selling a business, would be abolished.
- Income and capital gains tax rates would be aligned.
- A crackdown on tax avoidance with the “fair tax programme”.
- A rise in income tax for people earning £80,000 or more, with a new “super-rich rate” for people earning £123,000 or more.
- Reversing cuts to inheritance tax made by George Osborne. A tax of 40 per cent is paid on the estate (such as property, money and possessions) of someone who has died if it is worth more than £325,000, but if a home is given to children or grandchildren, the threshold increases to £475,000.
- A tax on second homes that is equivalent to 200 per cent of the council tax bill for the property in question. This tax would apply to properties that are considered holiday homes, rather than second homes for employment purposes.
Please keep an eye out for the Conservative edition coming out soon.