As today (6th April 2017) marks the first day of the new financial tax year, the Jupix team have delved into what changes come into effect today that not only impacts on the property industry, but also Britain’s businesses.
Changes to the property industry:
As expert suppliers to the property industry, Jupix estate agency and property management software, part of ZPG have a keen interest in changes to the property industry, and how it may impact on the housing market.
While the industry awaits the letting agency fee ban to come into place at the end of 2017, here’s just some of the changes kicking-off at the start of the 2017/18 financial year.
Buy to let tax relief
Buy to let landlords will face new limits on tax relief on their mortgage interest, as the government phases out the higher-rate tax relief on mortgage interest over the next four years. This will mean a cut for those who receive the tax relief of up to 20%, likely to reduce the profits of landlords.
The new Lifetime ISA which comes into effect today (6th April 2017) is designed to help people who are saving for a house or their retirement, with the addition of a 25% top-up from the government on savings.
Those aged between 18-39 can save up to £4,000 a year to gain a bonus of £1,000 a year, which can then be used to either buy a first home worth up to £450,000, or be withdrawn after the age of 60 tax-free.
Savers with a Help to Buy ISA will have the option to roll their savings into their Lifetime ISA, or can continue to save separately.
Family home allowance inheritance tax
The new family home allowance, worth up to £100,000 per person, begins on the 6th April 2017, when a property is left to a direct descendant. These first steps of the reform will, by 2020, see some families able to give away £1million without paying inheritance tax.
Under such reforms, those with direct descendants, including children or grandchildren, will get a £100,000 tax-free allowance against the value of their property, on top of the existing £325,000 allowance already in place for everyone.
Therefore, families who own property at least £200,000 will be able to give away £850,000 tax-free.
Changes to Britain’s businesses:
As with all businesses, property agencies and suppliers like Jupix, part of ZPG, will be subject to several changes which come into effect today (6th April 2017). Here’s just some which may have an impact upon your business.
Gender pay gap reporting rules
If your business employs over 250 staff, you will be required to lay-out the differences in pay between men and women on their websites, as well as a central government site – providing potential employees easy access to the data. Such data will include hourly pay, and bonus averages, as well as the proportion of men and women receiving bonuses, as well as the proportion of men and women in the best and worst paying jobs for each employer.
National Living Wage
Millions of workers over the age of 25 now enjoy a 4% pay rise, effective from 1st April 2017, as the National Living wage rose from £7.20 an hour to £7.50