Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Ros ." at "04/10/2015 - 13:22":

Uncertainty over whether this might be extended to companies is one reason I haven't gone that way. It's difficult to plan ahead at all when government messages about their intentions are so incoherent.

Reply to the comment left by "Alison King" at "04/10/2015 - 13:52":

Politicians incoherent - unthinkable.

Reply to the comment left by "Jon Pipllman" at "04/10/2015 - 13:10":

Jon you said..."If Tesco couldn’t afford to pay the rates... council won't be knocking on my door". Your door won't be worth knocking on as if Tesco go, lots else goes too including your property value. (metaphoric - not just tesco's...Towns need jobs & employers create wealth and cashflow wider than their own firm)

If Tesco can't pay...You do loose! If they go or go bust and a higher priced store comes in or worse still, you have to pay to travel to shop... This is the proverbial "why should the hairdresser and window cleaner get very worried when Porsche garage moves to another town?"... well let me explain..

The knee bone is connected to the thigh bone ... you with it yet??

This is the problem .. the public's lack of ability to think beyond their own sphere and or unwillingness to even try to think laterally... When i say it will effect everyone I mean EVERYONE. When, after paying their Tenant Tax, the tenant can't afford to have a haircut and porch and Tesco have gone from your town, so none has a haircut anymore... you had better start to like long hair as the hairdresser will not be their long either.

I am not sure the Govt will change the Tax Relief on Ltd Co
They need Large Ltd Co Landlords with the backing of the City of London
and we all know CGT is dropping to 18%
even if the Relief was taken away from Co I would rather pay 18% than 40% tax so its still worth forming a Ltd Co

Reply to the comment left by "David Price" at "04/10/2015 - 12:15":

‘If it were based on actual rent collected then it would be a tax based on turnover and little better than the clause 24 tax.’

^ How is this possible? How could a levy of say 3% of actual turnover for ALL LLs be ‘little better’ than a tax of potentially >100% of profit for some LLs?

Amongst other things, Clause 24 appears to be a very simplistic attack on LTV or rather LTY (loan to yield) for non incorporated and encumbered LLs.

Re the licensing point you raise, in London it would be around £500 for 5 years. Not per annum. I know because I’ve had 5 of them already and will have to pay for another 4 before the year is over. But I do agree with you that if your profit per (unencumbered) property is genuinely only £500 per annum, then any licensing fees will be most unwelcome.

Reply to the comment left by "Ros ." at "04/10/2015 - 13:22":

Hi Ros

We would need some assurances from GO. If they bankrupt business and scare away big businesses then where will they grab all the money from?
We will all be down the foodbanks.

Reply to the comment left by "KATHY MILLER" at "04/10/2015 - 18:41":

Yes, Kathy. This anti-business approach from a Tory Government is incredible. Like the IFS said, there is no coherence, predictability or holistic approach to the economy. They are being very destructive and demolishing any confidence people had. Businesses can't operate in an atmosphere like this. And then with the worry that Corbyn could conceivably follow on from this. It's crazy. There will be no businesses to tax. I saw David Cameron on the Andrew Marr show this morning, talking about turning the country into a low tax country! Not for us, with our potential infinite rate of tax on losses!

Just for interest, this just dropped in my inbox regarding John McDonnell's crap:
http://www.martinco.com/news/2015/09/29/industry-body-rejects-labour-claims-on-rents-and-buy-to-let-tax-breaks/?utm_campaign=mac-news-section&utm_source=hs_email&utm_medium=email&utm_content=22531297&_hsenc=p2ANqtz--uFu7LQlsz1CoEpYPVMkhl5oAzFOgsvoeKzia4XeNzL6qK-E1A0BzFuUwzgxOVeqi3c_pBsL7cyuXqZsZw2jtac1UK9g&_hsmi=22531297#.VhFnfflVhBc

Tesco closing, in every town, would - imo - be a fantastic thing for the wider economy. But that is a different subject.

Next. I have been on a bike ride this afternoon. I passed this development

http://www.bellway.c...enturion-fields

It is the first time I have passed it since almost complete houses have been present

There was a guy parked up, peering through the fence. I stopped next to him and peered through the fence too. We got talking. He hopes to buy 2. He thinks the yields will be good due to proximity to the A63 / M62. I asked if the yields etc. were still attractive with the proposed budget changes in mind.

"What budget changes?"

The ones where the gross rent is treated as taxable income and the interest is only reclaimable at 20% - clause 24 in the proposed Finance bill

"Never heard of it. Will it make much difference to me, I have 10 houses just now?"

I told him I didn't really know much more than the headlines and that he might want to look it up on the internet. Then bid him good day and pedalled off, unconsciously shaking my head

Frightening really.

Reply to the comment left by "Dislexic Landlord" at "04/10/2015 - 15:44":

Carl Bayley and Nick Braun have recently published a book on Dividend Tax Planning. In the book the authors say that a review of small company taxation is planned and will report to Osborne before Budget 2016. The issues it will look at include:

- whether there are simpler ways that small incorporated businesses could be taxed (ie. taxing small company owners like sole traders and partnerships).

The authors say that the Government seems to be committed to removing 'distortions' in the tax system which encouraging people to do one thing instead of another purely on tax grounds for example setting up a company instead of running their business as a sole trader or partnership.

Who knows where this will lead.

Reply to the comment left by "Dislexic Landlord" at "04/10/2015 - 15:44":

Carl Bayley and Nick Braun have recently published a book on Dividend Tax Planning. In the book the authors say that a review of small company taxation is planned and will report to Osborne before Budget 2016. The issues it will look at include:

- whether there are simpler ways that small incorporated businesses could be taxed (ie. taxing small company owners like sole traders and partnerships).

The authors say that the Government seems to be committed to removing 'distortions' in the tax system which encouraging people to do one thing instead of another purely on tax grounds for example setting up a company instead of running their business as a sole trader or partnership.

Who knows where this will lead.