COVID19: Support for Landlords and tenants
A look at the government measures to support landlords and tenants during COVID-19.
Q) I am a landlord, can I receive funding via the Coronavirus Self Employment Income Support Scheme (SEISS)?
General property landlords cannot claim for the Self Employment Income Support Scheme (SEISS) for lost rental income, as rental income is classed as investment income rather than trading income.
However, a Furnished Holiday Letting (FHL) business is regarded by HMRC as a trading business so if you are a FHL landlord, you will be able to claim for lost earnings under SEISS.
Q) Do I have any help with deferring Income Tax payments?
Landlords who pay income tax under self assessment can delay making their second payment on account for 2019-20, which is usually due by 31 July 2020.
Landlords choosing to delay payment will have up to 31 January 2021 to pay.
See what other help there is available to pay your taxes here.
Q) What are the changes to CGT which came into force on 6th April 2020?
The new CGT rules for those selling second private properties, affecting landlords, came into force on 6th April 2020, whereby CGT and a standalone CGT return is required to be paid and submitted 30 days from completion of sale. See more detail here.
Due to COVID-19, HMRC have confirmed a relaxation to the new rules and will not charge penalties for failure to report or pay capital gains within the 30-day deadline until after July 2020.
Q) Can I claim any funding via the Coronavirus Job Retention Scheme (CJRS)?
There maybe an opportunity for support via CJRS if you are a large landlord who pay staff in their business, including maintenance staff or other directors in the business due to COVID19.
If this sounds like you, you can potentially claim a grant of up to 80% of the salaries of staff, up to a maximum of £2,500 per calendar month instead of laying off staff or making them redundant. This is known as furloughing.
If you are a sole director company landlord, you may also furlough yourself if you are unable to keep trading.
See more details here.
Q) Where do I stand with evictions of tenants in my properties?
During COVID-19, there is a ban on evictions.
If you are a private landlord or offer social security accommodation, you will not be able to start proceedings to evict tenants for at least 3 months during COVID-19.
If your tenants are experiencing financial difficulty directly due to COVID-19, you will be able to apply for a 3 month mortgage holiday on your property.
At the end of this period, landlords and tenants should work together to set up a payment plan for unpaid rent, but taking into consideration a tenant’s individual circumstances.
Q) I have commercial tenants, where do I stand?
Under the Coronavirus Bill passed by parliament, no business can be forced out of their premises if they miss a rent payment in the next three months.
The commercial tenants eligible are those in England, Wales and Northern Ireland.
Similar measures are in place in Scotland, more details can be found here.
Q) My properties are empty, where do I stand with business rates relief?
Under the government's existing rates relief policy, landlords do not have to pay business rates on empty buildings for 3 months.
The Expanded Retail Discount scheme gives local authorities discretion to allow a business rate holiday to retail, hospitality, leisure and child nursery businesses.
