The beginning of the new tax year may not be met with the same popping of champagne corks and singing of auld lang syne as January 1st, but this year it could open the door for new property opportunities.
April 2016 marks the implementation of two major tax changes which could mean that you can start your search for your first home with Keywest or enable you to broaden your criteria and invest in a bigger home than you previously thought possible.
Make the Most of Saving Opportunities
A new personal savings allowance was introduced on April 6, and there are other savings initiatives which should help you to save for a deposit by reducing or minimising the amount of tax you have to pay, either now or in the future. Start browsing the properties for sale with Keywest now to give you the motivation to keep those savings plans on track.
From now on, you can earn interest worth £1,000 from your savings if you’re a basic-rate taxpayer without having to pay any tax at all, and even higher-rate payers can earn £500 without being taxed.
Other ways to maximise your saving potential include making the most of the tax-free £15,240 ISA limit and considering whether you could benefit from paying your money into a Help to Buy ISA. This property-specific ISA option was launched last December.
There is also the prospect of a new Lifetime ISA to look forward to if you will still be under 40 by the time April 2017 rolls around. This will be aimed specifically at people saving up for deposits or for retirement and could mean that you will get a £1,000 government boost if you save up a yearly amount of up to £4,000.
Buy Big and Earn from the Extra
Another option that you may now be able to consider this year is browsing slightly bigger properties during your search through the Keywest listings and thinking about renting out spare space after the government raised the amount you can earn tax-free if you choose to take in a lodger.
The tax-free earning potential of the Rent a Room initiative had been frozen at a maximum of £4,250 since the government launched the scheme in 1997. From this year, however, you can earn as much as £7,500 each year without having to pay tax on the rental income.
If you have the capital to invest in a larger property and the means to maintain any mortgage repayments comfortably, the Rent a Room scheme could open doors to earning potential whilst offering you the opportunity to make the most of a larger property if you do not need all the space. This could be an interesting consideration for growing families, for example, who want to buy a ‘forever home’ rather than moving again once their families expand.
Keywest is the perfect place to start you search for that all-important forever home. Browse our website or get in touch today 01162 544 555 to find out how we can get you on the first rung of the property ladder or help you to move onwards and upwards as a homeowner.
