A special conference is being held in Aberdeen to help landlords facing a 100% tax hike alongside the biggest shake-up of Scotland's letting industry in 30 years.
Tax experts from Anderson Anderson Brown LLP and letting industry specialists from Aberdein Considine are hosting a free event on June 22nd to help those with multiple properties prepare for a raft of new tax and legislation changes coming into force this year.
The Aberdeen Landlord Conference, will give landlords the chance to learn about the changes directly from the experts who will offer them helpful advice on what they can do to mitigate the impact.
The biggest change facing landlords is the Private Housing (Tenancies) (Scotland) Act 2016, which has introduced a new form of private tenancy for Scotland.
Adrian Sangster, National Leasing Director at Aberdein Considine, said: “With tighter regulations, increased taxation and a cull of reliefs and benefits, Scotland’s private rented sector and its landlords find themselves at a crossroads.
“This event has been put together to explain recent tax changes that have hit landlords as well as what they can do to mitigate the impact.
“They will also be able to find out more about the biggest shake up to the private rented sector in almost 30 years with the introduction of the new Scottish tenancy.”
Under the new regime, tenancies will have no minimum period and will continue indefinitely unless the tenant wants to leave or the landlord terminates using a prescribed ground for eviction.
The ‘no fault’ ground of termination under Short Assured Tenancies (SAT) has been removed from landlords.
The main recent tax changes facing landlords are:
Restriction of tax relief on mortgage interest
Additional Land & Buildings Transaction Taxes
Abolition of Wear & Tear allowances
Higher Capital Gains Tax rates
Accelerated payment of Capital Gains Tax for Non Residents
Increased reporting for UK property disposals by Non Residents
Stuart Petrie, Private Client Tax Senior Manager at Anderson Anderson Brown, said: “In terms of how much the tax cost will be, it will very much dependent on individual circumstances.
“However, the restriction of tax relief on mortgages alone could double many individual’s tax liabilities.”
The event comes against the backdrop of falling rents in the north-east due to lower oil prices weakening demand for accommodation in the city.
Average rents in Aberdeen have fallen from a previous peak of £1,110 per month in 2014 to precisely the same as the Scottish national average, £768 per month.
On current trend, Glasgow will overtake Aberdeen next quarter with just £28 per month separating them at present, although both demand and rents in the Granite City have stabilised in 2017 to date.
Delegates at the Aberdeen Landlord Conference will hear from Aberdein Considine's independent financial advisers about how latest buy-to-let remortgage rates could help them mitigate the impact of lower rents.
The conference, at Radisson Park Inn, on Justice Mill Lane, will also feature and a host of other industry speakers offering insight into Scotland’s property sector, including from Citylets, ARLA Propertymark and Safe Deposits Scotland.
To register for the free event, which starts at 8.15am, visit www.acandco.com/landlordconference