BUDGET MARCH 2021

KEY POINTS

In no particular order

Universal Credit

  • Uplift of £20 per week extended for another six months – in form of £500 payment
  • Universal Credit advances to be recovered over 24 months where taken out after April 2021
  • Maximum rate for recovery of Universal Credit advances to be 25% of standard allowance

Local Housing Allowance From June 2021

  • Care leavers under 25 to be exempt from Shared Accommodation Rate
  • Anyone under 25 who has spent at least three months in a homelessness hostel 25 to be exempt from Shared Accommodation Rate

Furlough Scheme

Extended to end September but with employer contribution in July, August and September

Support for Self Employed

  • To continue until September

Living Wage

  • To be increased to £8.91 from April 2021

Income Tax

  • The personal allowance will increase to £12,750 and then remain at that rate until 2026.
  • The higher-rate threshold will increase next year to £50,270 next year and also remain at that rate until 2026.

National Insurance

  • Contributions thresholds to rise in line with Consumer Prices Index
  • Primary threshold/lower profits limit will be £9,568  until April 2026
  • Upper earnings/profit limit will be £50,270 until April 2026.

Pensions Lifetime Allowance to be frozen

Inheritance Tax

To remain at £325,000 until April 2026

Stamp Duty

  • Holiday on duty payable on properties up to £500,000 continues until the end of June.
  • Holiday on duty payable on properties up to £250,000 continues until the end of September.
  • Return to usual levels (payable on purchases over £125,000) from 1 October

Capital Gains Tax

  • Annual exemption to remain ay £12,500 for individuals, personal representatives and certain types of trusts until April 2026
  • Annual exemption for other trusts to be £6,150 until April 2026

Corporation Tax From April 2023

  • Businesses with profits of more than £250,000 will be taxed at 25% rate;
  • Companies with profits of less than £50,000 will be taxed at 19%.

Businesses to be able to carry back losses of up to £2m in each of 2020/21 and 2021/22

VAT registration threshold remains at £85,000 until 2024

Tax Penalties To Be Reformed To Points Based System for VAT and Income Tax Self Assessment

  • To come into effect for VAT taxpayers from 2022/23 tax year,
  • To come into effect for taxpayers with business or property income over £10k per year from 2023/4 tax year
  • To come into effect for all others from 2024/5 tax year.

Duties

  • Alcohol duties to be frozen
  • Fuel duty to be frozen.

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Wishing all members and friends a Very Merry Christmas and a Happy and Healthy New Year

I look forward to seeing members in the on-line meeting on 5 January 2021. Please email crlawp@gmail com for a copy of the meeting invite.

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Assistance for Tenants In Difficulties

The following are all willing to assist tenants in difficulties, whether due to Covid-19 or ‘more normal’ problems.

Applications for assistance should be made by the tenant with or without support from the landlord.

Citizens AdviceTel: 01752 850488
Cornwall Council Benefits Department
(Includes requests for Discretionary Housing Payments). 
Tel:  0300 1234 100 https://www.cornwall.gov.uk/advice-and-benefits/benefits/benefits-and-coronavirus/
Cornwall HousingTel: 0300 1234 161 https://www.cornwallhousing.org.uk/find-a-home/
Inclusion CornwallTel: 01872 326440 http://inclusioncornwall.co.uk/
Nos Da KernowTel: 0300 1234 161 
Email: rmason-jones@cornwallhousing.org.uk

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Electrical Regulations – Apply to ALL New Tenancies (including renewals) from 1 JUNE 2020

There has been a lot of confusion surrounding the government guidance on 5 yearly electrical inspections and implementation dates.

Original guidance was for the regulations to apply to new tenancies from 1 July 2020, updated guidance stated tenancies which began ON or AFTER 1 June 2020 were included (even though this guidance came out in the middle of June).

MCHLG has confirmed to the NRLA

  • The regulations apply to tenancies granted from 1 June 2020.
  • The requirement to provide an EICR or similar applies from 1 July 2020.
  • This means that any tenancies granted from 1 June 2020 will be required to have an EICR or similar from 1 July 2020, there is a grace period of one month for tenancies granted from 1 June 2020.

The regulations will continue to be rolled out to all existing tenancies in England from April 2021.

If your tenancy agreement DOES NOT include a clause specifying how the tenancy will continue after the end of the fixed term are ‘statutory periodic’ tenancies you will need to have an inspection undertaken.  If you are unsure, get one done anyway.

If one of your tenancies began or renewed anytime in June, you should write to your tenant(s) explaining the situation and requesting permission for access for the inspection to take place at the earliest opportunity.  Make it clear in that letter that the tenant can refuse access if isolating or shielding due to Covid-19. 

If the tenant does not reply the landlord should make further attempts, in writing, and keep copies of all correspondence. 

If the tenant refuses permission keep copies of correspondence and make regular attempts to negotiate entry with the tenant.  Some tenants may prefer to arrange access with the electrician, but do not permit the tenant to specify the electrician to be used.

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Three judges say landlords can serve a Section 21 notice even if a gas safety certificate has been issue after they move in, but the comment leave the door open for an appeal and likely Supreme Court hearing.

The Court of Appeal has handed down judgement on the contentious Trecarrell House vs Patricia Rouncefield case and has backed landlords

Both sides in the case sought to clarify if landlords can serve a Section 21 eviction notice on a tenant when a Gas Safety Certificate has been served after a tenancy has begun.

A valid certificate is one of several pieces of paperwork landlords must give tenants before they move into a property in order to enable a later valid Section 21 eviction.

Tenant Patricia Rouncefield has sought to clarify this important point of law after her landlord Trecarrell House attempted to serve a S21 notice on her despite having provided a Gas Safety Certificate after her tenancy began

Three judges, Lord Justices Patten, King and Moylan, have this morning passed judgement in this case following the hearing in January during which evidence was presented from both sides.

Gas safety certificate

Rouncefield’s property had a valid gas certificate both before and during her tenancy but she was not given a copy prior to or when she moved in During February 2017. She was served with a Section 21 notice on 1st May 2018.

The judges each gave their own commentary on the case but agreed that ‘as long as the [Gas Safety certificate] is provided to the tenant prior to service of the section 21, the notice will be valid’.

In the commentary on the decision, the lead judge said: “It is difficult to reconcile this interpretation of the law with legislation which would appear to be aimed at ensuring the safety of tenants.

“Similarly, I find it hard to balance this interpretation with the actual wording of regulation 36(6)(b) of the 1998 Regulations which states that the GSR needs to be given to any new tenant “before that tenant occupies those premises.

“I would agree with Moylan LJ’s characterisation of the majority finding: late service of the GSR for the purposes of 36(6)(b) becomes a mere “procedural requirement” rather than a “substantive sanction”.

Industry reaction

Tim Frome, Head of Legal at Landlord Action, says: “We’ve been waiting with baited breath for this decision from the Court of Appeal and on the face of it the news is fantastic for landlords such that, due to an admin error, they can’t be prevented from serving a Section 21 notice.

“This judgement may be further appealed, but as long as a certificate is served before a S21 notice then that will be sufficient.

“At Landlord Action we have a small percentage of cases where this problem has arisen and our clients will be heaving a huge sigh of relief.”

John Stewart, Deputy Policy Director for the NRLA, which supported Trecarrell House during the initial stages of the case, says: “We welcome the clarity that today’s ruling brings for the sector. Going forward, however, ministers remain committed to eventually getting rid of Section 21 altogether.

“We have been campaigning to ensure that such moves are only made within the context of improvements to the way courts handle cases and clear, comprehensive and timely routes for landlords to repossess properties in legitimate circumstances.

“We are heartened therefore that the Housing Minister has made clear that such changes will only be made “in a considered manner” and not as an immediate response to the coronavirus pandemic.”

From Landlord Zone

We feel sure the landlords in this case would want to welcome the many others who have supported them in this case.

We continue to advise landlords to ensure all paperwork, including gas certificates, is provided to a potential tenant when viewing a property.

A list of the paperwork can be found on the CRLA Website, in the Members Area.  Look on the Download Information for Landlords page or contact Ruth Clarke for a copy.

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