August 2018 Newsletter Cylchlythyr Misol Awst 2018
The Bank of England has increased base rate by 0.25% to 0.75%
This is potentially good news for savers, with rates around 1.5% now available. However you need to be pro-active and change accounts – the banks will not automatically increase savings rates.
For a borrower with a variable rate mortgage of £100,000 this means an additional £250 per year / £21 per month. Banks will automatically increase mortgage rates! Fixed rate mortgages will see no change.
HMRC are making many more mistakes with assessments, tax codes etc. Check all documentation carefully or forward it to myself for checking.
For individuals letting out their property via Air B and B or for short term lets, ensure that your insurance company is notified or in the event of a claim you may not be covered.
Newspaper reports suggest higher taxes in the Budget. Increases suggested include National Insurance for workers over 65, loss of higher rate relief for pensions, more tax on buy to let / second homes / long term Air Band B, less tax relief for Aim investments and an “Amazon tax’.
Ask Huw : “I am contemplating buying a house which is leasehold”
Many modern houses have been sold as leaseholds rather than the traditional freehold, meaning that ground rent is payable. The ground rent can become expensive, often doubling every few years. As a buyer ensure you know and understand the terms as they can be very onerous and it could be difficult to obtain a good mortgage.
As a seller you may have difficulty selling and have to reduce your eventual selling price.
If you wish to contact me in complete confidence my details are:
www.huwrobertsaccountant.com 07967 976854