Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "15/08/2015 - 10:42":

PS, anyone who didn’t get Upad’s email can still send them a message at:

landlordteam@upad.co.uk

Nice one Appalled Landlord...

Reply to the comment left by "Appalled Landlord" at "15/08/2015 - 10:42":

Well done!

Their example of 12,000 rental income plus 27,600 from job does not mean they are safe from 40% tax! They have neglected to consider the cost of finance. The whole point is that if they have a mortgage / mortgages, they will be pushed into the 40% tax band and not just slightly above it but up to their neck in 40%!

Their article is infuriating and will compound people's ignorance and false sense of security. One step forward, two steps back. Idiots like this play right into Osborne's hands. I wouldn't be surprised if he's relying on people's lack of awareness, and how these people will only realise when they're confronted with an extortionate tax bill they cannot afford. It's outrageous!

Reply to the comment left by "Stewart Jackson" at "15/08/2015 - 10:16":

Gosh... You are the MP for Peterborough!

It's all in the wording....is it 12,000 gross income (after allowable other expenses) or is it 12,000 net income (after all..including finance...allowable expenses).

If it's 12,000 gross (after other allowable expenses but before the currently allowable finance interest) plus 27,600 they are still in the basic rate tax bracket.....however

that does not take into account that if you need to sell adding the CGT on (with a small profit) puts you up to the 40% , nor does it comment at all on the effect this will have on the future availability of mortgages. It seems to me that it will be virtually impossible to get a BTL mortgage in the future. The lenders will have to tighten up all their criteria.

Reply to the comment left by "Lisa Stux" at "15/08/2015 - 11:23":

Yes , you're right, Lisa. How would they assess "affordability"?

Although I wonder whether people would have taken the mortgages they have now if the lenders had calculated using the new tax plans.

Reply to the comment left by "Charmaine ******" at "15/08/2015 - 10:19":

Hi Charmaine

James Davies did a webinar on 30.07.15 which included the following on the agenda -

- The Impact of the Election
- What we've learned from the Budget and the Queen's Speech
- What's in store the rest of 2015

Unfortunately I missed it due to work commitments - I wonder if you or anyone else caught it and if so, what he said in it?

Reply to the comment left by "Stewart Jackson" at "15/08/2015 - 10:16":

Hi Stewart.
The only one where I have been informed that the MP has been written to is David Nuttall. Our member here, Neil Allen, has written to him.
I think it's an excellent idea to target marginal constituencies. We just need to know how to go about it.

Reply to the comment left by "Appalled Landlord" at "15/08/2015 - 10:51":

Hi Appalled. I've just slightly changed your email, so that they take it more seriously than if we were all sending the same one. It was like one of the exercises we used to do in school for English language. I've also added the link to the petition, for what it's worth.
[on a separate subject, did you get my email about doing some new examples for the Public Committee on the Finance Bill. Let me know if it's not convenient for you and I'll ask someone else on the site to do some]

'To whom it may concern.
I would like to make a complaint about the article you sent out today which suggested the effect of the proposed change on mortgage interest 'relief.' Unfortunately, the person who wrote it does not understand at all the implications of the measure. It is likely to bring buy-to-let mortgages to a standstill, as who is going to take out a large loan on a house, when they cannot put the costs of servicing that loan in as a business expense?
There is a mountain of information relevant to this issue, if the person who wrote the article would like to do some research and then send out an updated and accurate article.
In the meantime, the article has done a disservice to those who will read it and be lulled into a false sense of security. Many people don’t understand it because it is described in language that only a tax accountant understands and the Chancellor's speech was very misleading in the Budget. We need to make them understand what is planned for them. If not, they are only going to realise the devastating effect it will have on their finances as their tax bills strangely become much bigger each year until 2021. The effect of interest rises, which are predicted to start next year, will be devastating and will mean many people will be paying massive tax bills even if they have made no money or even made a loss.
For myself, I am entirely dependent on the income from my portfolio. This measure makes my business model defunct and I will have to sell up and/or have my properties repossessed, as how will I be able to pay a large tax bill when I have no income? The measure is bizarre and outrageous. It really doesn't help when people who don't understand the implications write and send out grossly inaccurate emails about it. You need to rectify this immediately, if you don't want to bring your organisation into disrepute.
If you want to help your readers you need to explain the effect this proposed change will have, and how they can help prevent it.
The website: http://saynotogeorge.co.uk/why-say-no/ shows how various groups of people will be affected, and how they can contact their MP.
This page: http://www.property118.com/contact-mp/77191/ describes what to write to him or her.
Many people wrongly think that they will be unaffected if they are currently basic rate tax payers. This page: http://www.property118.com/only-1-btl-and-hmrc-tax-me-out-of-business/77297/ shows how they may be pushed into the 40% band.
Finally, from the top of this page: http://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-268/#comment-62071 they can download a spreadsheet which they can use to calculate their tax today, and what it would be in 2020/21.
Can you also please circulate the petition that has been started against this? In a small space of time, it has garnered more than 13,000 signatures, but we need far more to get a parliamentary debate on this issue.
Petition: Reverse the planned tax relief restriction on ‘individual’ landlords
It is imperative that you send these links to everyone on your mailing list. I am sure they would be grateful to you for them.
Yours sincerely

Reply to the comment left by "Ros ." at "15/08/2015 - 12:58":

Hi Ros

I agree, individual replies would be good, but if people only have time to copy and paste your email, the number of replies would indicate the strength of our feeling against their circulating something that so badly undermines our campaign to raise awareness.

The title of the article is “Is Buy-To-Let still a good idea after the Budget?” Yet she doesn’t answer the question, or tell people how they can find out the answer for themselves

I like your improved version. I was so appalled at the Upad article that I dashed off my reply, just adapting what I had sent to the gurus in Peterborough earlier this week. (They didn’t circulate that, by the way, or even reply).

Thank you for including female MP’s. I had noticed this unconscious chauvinism twice and meant to correct it, but forgot both times in my haste. Apologies to all who were offended.

I have not received an email from you, but I am very busy preparing for a court case so I don’t have much time for anything else. If you mean examples of the effect the change will have, every member of the forum can provide those by putting their own current figures in the spreadsheet and calculating the results.

Ros, you have my unbounded admiration for the enormous amount of work you have put into this campaign, day after day, from the beginning. You are a heroine!