The biggest winners are professional landlords who hold their properties in a limited company, of which there are 296,000 in the UK, according to property agency Hamptons.
These investors could realize annual tax savings of tens of thousands of pounds due to the cancellation of the planned increase in corporation tax to 25%.
The rate will now remain at 19%, which will allow an incorporated owner with £250,000 of rental profits £15,000 a year in corporation tax, according to analysis by tax firm Blick Rothenberg.
George Parker of Blick Rothenberg said: “All corporate dividends will also be at lower rates, due to the cancellation of the 1.25% dividend tax hike. All in all, it’s a win-win situation for rental investors. »
Mick Roberts, who owns dozens of properties in Nottingham and mainly rents to tenants on housing benefit, said canceling the planned corporation tax hike would save him £20,000. He said the move will have convinced incorporated owners to stay in the game a bit longer.