Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 9 years ago 9619

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Budget 2015 - Landlords Reactions

The concern is;

Budget proposals to “restrict finance cost relief to individual landlords”Summer Budget 2015 - Landlords Reactions

To calculate the impact of this policy on your personal finances download this software


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MoodyMolls

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18:05 PM, 5th October 2015, About 9 years ago

Mark Shine

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18:07 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Mark Shine" at "05/10/2015 - 17:42":

Further, and apologies if I missed it, but has it been stated by CML what % of these 1.6m BTL mortgages are LTD company BTL mortgages?

Dr Rosalind Beck

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18:09 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Mark Shine" at "05/10/2015 - 18:07":

I don't know where I got this from, but I heard that 9 out of 10 landlords are not incorporated, but that about 30% of properties were in limited companies...

MoodyMolls

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18:13 PM, 5th October 2015, About 9 years ago

ww.theguardian.com/politics/2015/sep/22/labour-housing-policy-must-be-credible-to-win-back-tory-voters

Ed Duncan

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18:16 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Barry Fitzpatrick" at "05/10/2015 - 17:22":

Hi Barry
I think your tax as a percentage of actual net income will increase , so that you actual cash flow weakens with this new tax

Ed Duncan

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18:23 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Barry Fitzpatrick" at "05/10/2015 - 17:22":

Hi Barry
I think your tax as a percentage of actual net income will increase , so that you actual cash flow weakens with this new tax

MoodyMolls

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18:24 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Lisa Stux" at "05/10/2015 - 16:05":

I also wrote to her

Gromit

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18:27 PM, 5th October 2015, About 9 years ago

@Ed

Whether or not your cash flow is worst depends upon whether HMRC deems you to be Higher Rate Taxpayer or not. If you remain a Basic Rate Taxpayer under the new rules then you'll see no difference. If you're deemed to be a Higher Rate Taxpayer then for each £1000 of additional interest you pay you will actually only cost you £800.

But you're right the effective rate of tax on actual profit will go up.

Darlington Landlord

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18:30 PM, 5th October 2015, About 9 years ago

Reply to FOI request - looks like a lot more landlords than they estimated will be affected!

I refer to your request, which was received on 5 September 2015, for the following information:
FOI 2615/15: When HMRC produced its impact report on the proposal to restrict finance cost relief for individual landlords, how many basic rate tax payers did HMRC assume would become higher rate tax payers as a result of the proposal and how many properties did HMRC assume are currently owned by these landlords?
I am answering under the terms of the Freedom of Information Act 2000 (FOIA).
HMRC has not estimated the number of basic rate tax payers that would become higher rate tax payers once the proposal to restrict finance cost relief for individual landlords comes into effect, from 2017-18, nor as a consequence is an estimate available of the number of properties that are currently owned by these landlords. The actual number of taxpayers affected by the proposal will depend on behavioural changes and other economic factors.

Laura Delow

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18:32 PM, 5th October 2015, About 9 years ago

Reply to the comment left by "Ros ." at "05/10/2015 - 15:17":

Your thinking is along the same lines as mine Ros and although I am blessed with an unencumbered portfolio of 18 London properties (mortgages repaid over the last 5 years as a result of reading the writing on the wall), I am now selling some & tax planning with my accountant as I wholeheartedly believe there is a wider picture/agenda going on and we're allowing ourselves to be sidetracked/smoke screened by Clause 24
Read the House of Commons Briefing Paper dated 12th Aug 2015 file:///C:/Users/Laura/Downloads/SN07094.pdf in which us Landlords are called a cottage industry (also pls do read the various links in this paper).
The bigger picture of "Affordable Housing" through "Build to Rent" is the longer term problem we face. GO et all are not thick - they know the impact on the so called "cottage industry landlord". All the tweaking (albeit painful tweaking) through tax, licencing, threatened rent controls/caps is just an en route method of discouraging new landlords or existing landlords from buying property & encouraging existing landlords to exit the market. There is a far bigger picture afoot which we must not be naive enough to ignore, albeit may take a while for us to feel the true impact. I'm not being a doom monger. I just read the various briefing notes. They tell it all. However if we accept their underlying plan, us serious landlords can collectively fight our corner but we must come together first in order we can successfully do this. If we can't collectively as well as individually fight this finance bill, what chance do we stand?

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