Summer Budget 2015 – Landlords Reactions

This is not a question landlord failing or passing. It has deem financial, economical & social consequences.

For the many ignorance is a bliss.

Since the Petition. I have sent emails, made telephone calls, asked every man & his dog to sign and to spread the word around with family/friends use their twitter, facebook etc..

It was curious that most of them did not even bother to ask or why not should they sign.

I have submitted a question under the FoI Act.

I am now composing an email to the members of the Communities and Local Government Committee. Is there a link anywhere please to the original example from Megan Shaw? I've been searching for half an hour....... Or, even better, is there a letter out there, already posted than I can 'adjust'. I am in awe of some of the letters, particularly from Ros and Mark...I wish I was as articulate!

Reply to the comment left by "Lisa Stux" at "10/08/2015 - 11:16":

@Lisa

Please, email : megan.shaw @hmrc.gsi.giv.uk. She is very helpful. I have used her example to forward to my MP.

It is good example as tax payer who pays £ 2800 tax will end up paying £14200. An increase of £ 11400 i.e. or 507%.

This example would carry more credence as it is an example prepared by the HMRC.

Please see my latest (related) blog >>> http://www.property118.com/forced-to-become-a-tax-exile/77412/

There is a solution to my economic situation but it isn’t nice at all 🙁
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Reply to the comment left by "Lisa Stux" at "10/08/2015 - 11:16":

Hi Lisa

Please see >>> http://www.property118.com/contact-mp/77191/
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Dear Greater Manchester Conservative MP’s,

Firstly, thank you for taking the time to read my letter, as I’m sure you will no doubt have many issues to deal with.

I and many of my colleagues would like your help in reversing the proposal to ‘restrict tax relief on profits for individual landlords’ which was brought forward in the summer budget. Whilst it is a nice sound bite to appease the left, it is in fact an attack on the very fundamentals of doing business. I and many other landlords went into the property business because it is a business. We operate within the rules and provide much needed accommodation for people who either do not want to buy or cannot buy their own home. I personally house many vulnerable tenants throughout Manchester; including victims of domestic abuse, ex-convicts, ex-substance abusers, and families in the very poorest parts of Manchester.

I bought all of my properties on an individual basis as opposed to a limited company structure. I am now being told that I have to pay tax on my turnover instead of my profit. Please see examples of before and after the tax changes for my personal situation:

Before tax changes:

£150,000 Turnover
£50,000 General Expenses (maintenance, advertising, repairs, voids, fees etc)
£50,000 Interest on finance
£50,000 Profit

£9,500 Tax (approx.)

After tax changes:

£150,000 Turnover
£50,000 General Expenses
£100,000 Profit

£29,500 Tax (approx..)
Less £10,000 basic rate allowance
£19,500 Tax (approx..)

As you can see these changes effectively double the amount of tax that I will have to pay. This is before interest rates rise. If base rate were to go up by 2% I would only be making a profit in real terms of £17,500, but I would still be required to pay tax of £13,000! That is an effective tax rate of 75%.

The effect of this will be bankruptcies amongst normal hardworking people who have done the right thing by investing for their future – but more than that, you will see less people willing to house vulnerable groups, higher rental prices due to higher tax taxation, and lower quality rental stock because there will be less money for improvements.

This is not only unfair, but is morally wrong and completely misguided at best, it is not right to sever the link between turnover less expenses equals profit, and I implore you all to show representation against this change before it is too late.

Petition to Parliament https://petition.parliament.uk/petitions/104880

I have been a Conservative voter my whole life, as have many of my friends, and I can assure you that this one policy alone has completely alienated us from the party.

I am happy to meet at any time to discuss in more details and present alternatives to you.

Best regards,

Neil Allen

Reply to the comment left by "Lisa Stux" at "10/08/2015 - 11:16":

Please also see >>> http://www.property118.com/tax-levy-campaign-day-2-mission/

This will make things MUCH easier for you 🙂
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Reply to the comment left by "Neil Allen" at "10/08/2015 - 11:53":

Superb letter Neil - well done!
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Reply to the comment left by "Neil Allen" at "10/08/2015 - 11:53":

Fantastic, articulate letter Neil.
I urge others to copy it and insert their own details and send out to everyone you can think of. I'll be using it, for sure.