Landlords and tenants: the government measures to support landlords and tenants during the coronavirus crisis.

Discretionary Grant Fund

  • A Discretionary Grant Fund is available for small and micro-businesses that are adversely affected by the Coronavirus and are not eligible for other grant schemes.
  • Applications must be made by 9 am 15 June 2020. See COVID-19: Discretionary Grant Fund

Other Grant Funding

  • The Small Business Grant Fund (SBGF) provides grant funding for businesses eligible for Small Business Rates Relief (SBRR) and Rural Rates Relief (RRR). 
  • The Retail, Hospitality and Leisure Grant (RHLG) is provided to businesses in England in receipt of the rates Expanded Retail Discount with a rateable value of less than £51,000.

See COVID-19: Grant Funding for business

Self-employment income support scheme

  • General property landlords are unable to claim under the COVID-19 self-employment scheme in respect of lost rental income: rental income is investment income and not trading.
  • Conversely, Furnished Holiday Letting (FHL) is specially treated as a trading activity for Income Tax, Corporation Tax and Capital Gains Tax (CGT) purposes.
  • Where an FHL business involves the provision of extra services, it may be reporting its profits as a trade and have used the self-employed pages of the Self Assessment return or partnership return. In the case where a holiday trade exists, it will be possible to claim relief under the Self-Employed Income Support Scheme (SEISS).
  • Smaller FHLs who report their profits in the Land and Property section of the return are unable to make a claim under the SEISS. 
  • FHLs may well not meet the required occupancy conditions for the 2020/21 tax year, in which case the period of grace rules will provide relief, see Furnished Holiday Letting (subscriber guide). 

See COVID-19: Self-Employment Income Support Scheme

Deferral of 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 COVID 19: Deferring Income Tax payments

CGT: Soft landing on penalties under a new 30-day reporting regime

  • HMRC have announced that they will not charge any penalties for failure to report Capital Gains on UK residential property within the new 30-day deadline until after July 2020.

See: Change to new CGT reporting

Coronavirus Job Retention Scheme

Large landlords may need to lay off some of their maintenance staff or directors during the crisis if social distancing is too difficult to achieve.

  • Landlords who are employers may claim a grant of up to 80% of the salaries of employees, subject to a cap of £2,500 per month, instead of making them redundant, due to the adverse effects of the Coronavirus.
  • A sole director company landlord may furlough the director in respect of their employment duties.

See COVID-19: Coronavirus Job Retention Scheme

Ban on evictions

Private or social accommodation

  • Landlords will not be able to start proceedings to evict tenants for at least a six-month period during the current emergency (extended from 3 months on 5/6/2020 and 5 months on 21/8/2020).
  • Landlords whose tenants are experiencing financial difficulties due to Coronavirus will receive a six-month mortgage payment holiday (extended from 3 months on 5/6/2020).
  • At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, taking into account tenants’ individual circumstances.
  • From 21 August until at least March 2021 landlords must give renters a notice period of at least 6 months. The exception to this is where there is anti-social behaviour and in cases of domestic abuse.

Commercial tenants

  • The Coronavirus Bill provides that no business will be forced out of their premises if they miss a rent payment in the six months to 30 September 2020. On 16 September 2020 the government announced an extension to the ban on evictions of commercial tenants to 31 December 2020.
  • All commercial tenants in England, Wales and Northern Ireland are eligible. 

See Press Release: Complete ban on evictions and additional protection for renters

Business taxes: Time to Pay

  • All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s Time To Pay service.
  • These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.
  • It is essential to contact HMRC and make a Time To Pay agreement before the tax debt becomes due. 

See COVID-19: Time to Pay

Empty property and business rates relief

  • Under the government's existing rates relief policy, landlords do not have to pay business rates on empty buildings for three months.
  • The Expanded Retail Discount scheme gives local authorities discretion to allow a business rate holiday to retail, hospitality, leisure and child nursery businesses.

See COVID-19: Business Rates

Making Tax Digital (MTD) for Income Tax

  • It was originally proposed that this new tax accounting system would commence in April 2020.
  • It is now postponed until at least 2021. In the meantime, HMRC's MTD for Income Tax pilot scheme is up and running and this may be an ideal time to try it out and get your systems in place.

See Making Tax Digital Tracker

Further details of all Coronavirus measures

COVID-19: Government support tracker
This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.

External guides

Other people's homes
Guidance for people working in, visiting or delivering to other people's homes.

 

Comments (8)

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All my income comes from a50% share in three houses that are usually rented out to students. Because of COVID I have no tenants for this year. I still have to pay mortgages and council tax,same as the posts above. I can’t see any answers to the...

All my income comes from a50% share in three houses that are usually rented out to students. Because of COVID I have no tenants for this year. I still have to pay mortgages and council tax,same as the posts above. I can’t see any answers to the previous questions. Can anyone help?

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Can you please advise me if I can get any financial help. I am a host family for foreign students who stay at my home and for students who train at a local academy to work on cruise ships. I file my self assessment and pay my taxes after taking...

Can you please advise me if I can get any financial help. I am a host family for foreign students who stay at my home and for students who train at a local academy to work on cruise ships. I file my self assessment and pay my taxes after taking off the rent a room scheme allowance I have had no income from students staying at my home because of Covid-19. I do not have any other income!!

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I’m a short term holiday let landlord and have been told repeatedly by HMRC that I’m not eligible for a self employed grant. My business has been decimated since March and my future is very uncertain. Should I go back to HMRC and explain it’s...

I’m a short term holiday let landlord and have been told repeatedly by HMRC that I’m not eligible for a self employed grant. My business has been decimated since March and my future is very uncertain. Should I go back to HMRC and explain it’s short term holiday lets?

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Hello I rent out properties and I am retired now I depend on my rent as my income but due to Covid two of my properties are empty one because tge tenant damaged everything with hammer and I can’t get repair man so I gave not much income and my...

Hello I rent out properties and I am retired now I depend on my rent as my income but due to Covid two of my properties are empty one because tge tenant damaged everything with hammer and I can’t get repair man so I gave not much income and my local Coventry council tax expect me to pay 3 lots of council tax obe for my house and 2 for empty houses
Can you advise as I have no money left
Thanks
Sheila

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Property I rent out has been empty since 15 march and gov rules mean it cant be relet is there anything we can get help with like polltax reduction? Any help or info gratefully received

Guest
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Hello,
My tax is complicated, I work currently on furlough. I rent 2 properties and a commercial shop.
I also have an online retail business.
How am I assessed for the self employed furlough scheme ?
I understand my rental income is exempt but...

Hello,
My tax is complicated, I work currently on furlough. I rent 2 properties and a commercial shop.
I also have an online retail business.
How am I assessed for the self employed furlough scheme ?
I understand my rental income is exempt but it my self employed other income counted ?
I’m taking a 20% hit on my wages
Loss of rental income due to tenants financial problems and my other self employed income has been hit badly to
Thank you

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Are FHL landlords definitely included within the statutory self-employment pay scheme? Although FHL is a trade, the landlords aren't normally treated as self-employed. The income goes on the land & property page, not the self-employment page. Is...

Are FHL landlords definitely included within the statutory self-employment pay scheme? Although FHL is a trade, the landlords aren't normally treated as self-employed. The income goes on the land & property page, not the self-employment page. Is there any HMRC comment that FHL profits are included in the scheme?

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David, we all agree that we need to wait and see how HMRC sets the criteria for FHL landlords. Obviously the starting point is that some are already trading through companies, if so they have the Employee Job Retention scheme. Some FHLs...

David, we all agree that we need to wait and see how HMRC sets the criteria for FHL landlords. Obviously the starting point is that some are already trading through companies, if so they have the Employee Job Retention scheme. Some FHLs particularly those who offer a lot of extras produce self employed accounts or partnership accounts and others, as you say report under the Land and Property pages.

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