Summer Budget 2015 – Landlords Reactions

All done - Thanks

As someone who has been reading this thread for the last few days, I just wanted to say well done to you all for putting together such a fight. I haven't commented as everything seems to have been covered. The main argument from my angle is we run a business, plain and simple - loan interest is therefore tax deductible. It is a nonsense.

I have a lot of people lined up ready to sign and promote "Scrap the mortgage interest tax levy before it forces tenants out and rents up!"

I'm sure I am one of many, ready to push the petition when given the go ahead.

Reply to the comment left by "Appalled Landlord" at "29/07/2015 - 19:29":

Hi AL.

I understand where you're coming from but think perhaps you're overestimating the importance of the wording. I say this because it is very unlikely that many tenants are going to stumble across this petition and think 'Oh that's a good point, I think I'll sign it'.

We have to drive them there and that will be through showing them the arguments. That is the reason that my friend Gary Bartram (Landlord, Agent and website developer), BTL Scotland and I are putting together an information website to show different sectors of the market what it might mean to them. The basic framework with home page should hopefully be up by the middle of next week, and the targeted information will follow shortly after.

I am extremely happy if people copy the idea but put their own slant and name on it. The goal is to stop George Osborne's lunacy, not build a name for ourselves.

Frankly it's far too late to take down Rahul's petition as it would lead to great confusion among those that have already signed up (currently standing at 727 and way on the way to hitting 1% of total needed to be discussed in Parliament).

Guys, Ruhal is getting the votes whether we think the wording is optimum or not. We have to run with it now unless the powers that be will allow it to be changed - unlikely.

Let's just get behind it and push push push.

The Dave and Margaret example is not great as a 0.75% increase in interest rates wipes out their £50,000 profit. This suggests that their business is not sustainable anyway. I think the example needs to show Dave and Margaret having more profit and less mortgage debt for it to be credible. Can anyone help with that?

I will be writing to my MP this weekend and will encourage my brother to do the same. I think the letter needs to be concise and too the point, as a lengthy letter is unlikely to be read.

What does everyone think? I have never written to an MP in the past and therefore unaware of how much time they invest in reading letters.

Reply to the comment left by "Connie Cheuk" at "29/07/2015 - 18:44":

Agreed Connie, I imagine the rationale behind the proposed levy is primarily to help to reduce the nations deficit gap.

If they genuinely wanted to control housing price inflation, then gradually phasing in conversion of ALL interest only BTL mortgages to repayment by 2020 for ALL residential landlords (whether incorporated or not) would be a more understandable approach.

Hello Syed,
The article you provided a link to is a bit simplified and confusing! I have made myself a spreadsheet (similar to one posted on this site) which seems to be giving the correct results and have checked it against some other examples on the web.

With a £50000 rental income as shown in the example, the landlord is well inside the 40% tax threshold with the new rules, more so if the landlord also has a day job! As soon as the landlord's rent income + salary exceeds £43000 (as it will be in 2020) higher-rate threshold he/she will be paying more tax than with the current rules. And the extra tax cranks up quickly if you have high mortgage interest payments.

Mike

Reply to the comment left by "Ruhal Uddin" at "29/07/2015 - 20:54":

Hi Ruhal.
What party does your MP belong to? I can always copy and paste the one I wrote to mine here, and you can amend it to suit you. My MP is Labour. He is also supportive and has said he will put my questions to the Treasury. Let me know if I should. All the best.
Ros

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "29/07/2015 - 19:39":

Hi BTL I S

I have had a look at the calculation, and I confirm what Trendo posted on page 145 last night:

http://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-145/#comment-60170

The mortgage calculator does not have a line for the 45% tax band for incomes exceeding £150k. Furthermore, it does not take into account the reduction in personal allowance on incomes between £100,001 and £121,199, after which it is lost completely.

It is to be avoided.

Mark Alexander published our own calculator last Thursday, and it is now available to download from the top of the introduction above. I see that your first posting was on Saturday, so you must have missed it.

I was surprised to see your link to the other calculator the other night, but I was too busy posting to download it.

Reply to the comment left by "Appalled Landlord" at "29/07/2015 - 21:14":

Just to give a man his due, I believe the spreadsheet was put together by Alex Caravello from the Milton Keynes Private Residential Landlords Association.