Summer Budget 2015 – Landlords Reactions

Any mortgage lenders out there ?

Any feedback on due diligence when recommending mortgages & any comments on mortgage lenders stress tests/affordability criteria too.....?

Ros, you mention ‘landlord tax’. It’s not though - as others have commented: it’s a tax specifically targeted at residential landlords who happen to be sole traders where property is held accordingly. Punished for decisions made retrospectively, ie those who chose to purchase in own names.

Reality is that (1) there’s a huge govt deficit (the real reason for low interest base rate) and (2) LAND values in many parts of the UK, and of course elsewhere globally, are over-inflated. I imagine George and his advisers’ rationale for this budget proposal was an attempt to tackle both, by the simplest means they could think.

In the event that (a) no U-turn happens and (b) the rules are applied to sole trading landlords RETROSPECTIVELY as proposed…. then I wonder if the impact could be spread to ALL landlords? By that I don’t just mean ALL landlords in the residential sector regardless of how the property is owned, but also to industrial, retail, leisure etc landlords?

* Mark I used capitals, but was not SHOUTING and would prefer to use bold or italics for emphasis. Another Q for your web guys..

Reply to the comment left by "Mark Shine" at "21/07/2015 - 21:01":

Just Google for a crash course in html, it works on most forums, eg html code for bold.

When you get good with it you will even be able to embed pictures and videos.
.

I think it is a: mad ass financial individual attack Tax , which is a bit of a mouthful i know , i guess we could turn it into an acronym :

MAFIA Tax

but i'm guessing that

Music and Film Independent Artists

will claim they have already been using it for years ...oh well try again !

Reply to the comment left by "Mark Shine" at "21/07/2015 - 21:01":

Hi Mark. I know what it is and how it is aimed at us private landlords only, but I suggest the phrase as something snappy. (just as the bedroom tax was not a bedroom tax - I didn't follow all that - but understand it meant a reduction in benefit if not enough people occupied a house)
I want it to be clear how we are singled out by it. And I don't want to use the Government's language re 'tax relief,' which suggests they are giving us something instead of trying to bankrupt us with such a shocking proposal that most landlords still haven't twigged, and are in denial, as who could believe such a discriminatory and game-changing policy could be brought in completely out of the blue (well a few rumours just before the Budget). I would suggest 'this iniquitous proposed landlord tax,' or this 'pernicious...' or this nefarious...' As others have said, it is more like a levy on top of tax, but that's not so catchy. Anyway, it doesn't matter; it's just an idea - one can take it or leave it. The main thing is to keep the pressure on in all the ways we can dream up. As you say, once the precedent is set and the Government can get away with this, it will be easier to introduce it for others...

Non Incorporated Landlord Levy ?
NILL Tax

Levy On Landlords LOL
.

One way around the issue of white goods would be to rent them instead of buying? Even better. ....create a limited company whose sole purpose is to buy your white goods.....then lease those to your private property business.....that could help you reduce your 'taxable' profit.

We need to maintain the distinction between the 2 identical models: ST LL & Corp LL. and the lack of equal treatment they are being given on the basis that altho exactlyidentical, they are treated differently. A firm basis for this has not been established as yet. If it is a busines then it is a business for both, if it is an investment then it is an investment for both.

The spin doctors would probably try something like this:

The British people are famous World wide for their sense of fairplay, and will generally get behind a minority group that is clearly being bullied and abused, and crushed out of existence that is the situation we find ourselves in.

We need to shift the focus of media reporting to show the truth, that the majority of people that will be affected are hard working average earners, standard tax payers today, catapulted into high rate tax payers overnight, with artificially inflated profit that doesnt exist - which in reality is a very expense..and then tax it. We need to redefine the perception of ST LL as the home guard of the PRS, solid and loyal to the families that are tenants, providing quality accom whilst the corporate fat cats are left to provide a non personal, clincal remote service, These are the landlords who have put their personal finances and futures into providing a good personal service and quality accomodation.

Unlike a large corporate LL where that property, a family home, is nothing more than a figure on a balance sheet. These LL who are the backbone of the UK, they are our firemen , nurses and police offices are average man in the street, this is not going to be directed solely at aristocratic champagne quaffing Bentley drivers.. No, This will affect far more hardworking normal everyday people who are LL, far more than "the Wealthy" LL

These people and their families have sacrificed much to try to be independant and provide for the future, to allow others to rely on the state now, and later in life ...these are the individuals and families that he government has decided to attack, whilst allowing companies to run exactly the same enterprise, with no levy or restriction. The uk needs to once again stand up and protect the small hardworking business and stop allowing the government to pander to the fat cats as it has in the past.

As David Cameron said "we are all in tis together", Crush the little man is not part of that ethos, let us hope that this is reconsidered and the conservative party get back on track.

Reply to the comment left by "Simon Roads" at "21/07/2015 - 23:34":

You should be writing speeches Simon. That was pretty good. I liked your NILL and Mark's LOL as well. But I'd still stick with LANDLORD TAX for the general populace.