Ask the Expert

A changing property landscape for landlords

Partner and resident property expert at George Hay Chartered Accountants, Toni Hunter, runs through some of the recent property tax changes affecting landlords and what they might expect from the upcoming Budget , and touches on key considerations for first-time investors.

How has the property tax landscape changed in the past two years or so, for UK investors and landlords?

UK property investors and landlords will have been impacted by a number of important tax changes taking effect between April 2019 and the present day. 2021/22 is the first tax year for which you cannot deduct mortgage expenses from rental income, with landlords receiving a 20 per cent tax credit on interest payments instead. In addition, since April 2020, Private Residence Relief has been restricted to nine months, and UK residents disposing of UK residential property have been required to report taxable gains and pay the estimated Capital Gains Tax (CGT) within 30 days of the completion of the transaction. As for what’s to come, the rate of Corporation Tax is set to increase to 25 per cent in 2023, for companies with profits exceeding £250,000, whilst a tapered rate will be introduced for those with profits exceeding £50,000, up to £250,000. This will impact UK resident and non-UK resident companies with an interest in UK property.

A Budget and Spending Review has been announced for 27 October, what can landlords expect?

It is fair to say that all crystal balls stopped working in March 2020. We are still waiting to hear the results of Capital Gains Tax reforms and are braced for increased tax rates and reducing reliefs for those who do not occupy the property they own. The “Build Back Better” programme promises focus on infrastructure but fails to mention the substantial housing shortage nor the disparity between wages and rent in certain parts of the country. In Cambridgeshire yields are relatively strong and gains are steady, so despite the heavy taxation, property can make a good investment if part of a long term strategy.

What advice do you have for first-time property investors, and buy-to-let landlords?

Research, research, research! The property market is extremely changeable and the ‘goalposts’ in respect of property taxation vulnerable to interference from the Government. Know the risks, ensure you comprehend the level of commitment required (including a “rainy day” fund to cover unexpected repairs or vacant periods), and have a plan – for example, what you can invest, how you will maximise your return and manage your portfolio, and who you will turn to for reliable, professional advice. To find out more about how we can support you with your plans for property investment, contact us on 01480 426500.

The benefits of radio advertising

With a wider range of options than ever before, it can be difficult to know what advertising solution best suits your business. Daniel Fox, Operations Manager at Star Radio, explains how radio can help grow your business and make your brand famous.

What is Star Radio?

Star Radio is an independently owned and operated radio station broadcasting to all of Cambridgeshire, with a target demographic of 35-54 year olds. Our listeners are loyal and passionate people who share our love of life in Cambridgeshire, and our love of great music!

Why should I consider radio?

Radio delivers an average ROI of £7.70 for every £1 spent, according to research by Radiocentre. Apart from Television (which is hugely expensive) there is nothing that comes close. Moreover, radio reaches a wide audience (90% of the UK population every week), sparks an emotional response and creates fame for your business. We reach people who are doing other things; nobody’s reading the newspaper while they drive to work, they’re not on Facebook and they’re not clicking banner advertising. But they are listening to us! Radio campaigns can also be planned and produced relatively quickly; in fact it’s not uncommon for us to be able to create a fantastic advert within 24 hours.

What are my options?

We’ve all heard the typical 30 second radio ‘spot’ - and they are extremely effective for the majority of people who work with us. We offer many other opportunities too, including longer-form ‘advertorial’ campaigns, which really help clients to showcase their products and services to tens of thousands of future customers. Want to be heard outside of a commercial break? Your business could sponsor one of our shows or key information features such as Traffic and Travel or Weather. If you need to boost awareness or run a call-to-action campaign, we can offer major on-air promotions, which directly engage the presenters with your product or service within the editorial environment. Need a great promo video? We can provide high quality visual content, including overhead shots captured by drone.

Radio advertising is expensive, right?

I think this is one of the greatest myths ever told. Not only does radio offer a tremendous return on investment - but it also represents excellent value for money. We also offer special discounts to Chamber of Commerce members, so please drop me a line if you’d like to find out more.

What has happened to radio listening habits during COVID?

As habits changed last year, and more people began working from home, there was an immediate leap in radio listening as people sought to find the companionship they missed by not being in an office environment. Research showed that 38 per cent of commercial radio listeners started listening for an extra one hour and 45 minutes every day! Here at Star Radio, we enjoyed a 400 per cent increase in time spent listening via connected devices (March 2020-March 2021) and that increased audience has been retained. All of this helps us to deliver great results for the businesses and brands who trust Star Radio to deliver them results.