Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Gary Dully" at "08/10/2015 - 11:37":

Hi Gary

Your calculation of the tax of £15,763 is correct, because you have used Alex Caravello’s spreadsheet that can be downloaded from the top of the page. However, your description of how the tax would work is wrong.

Several weeks ago when you wrote that rents would have to go up by 32%, I posted this:

We will not be taxed on 80% of our finance costs at 40%. 100% them will be disallowed, increasing our deemed rental income. This will be added to all other income and the tax will be calculated using the personal allowance and working through the tax bands. HMRC will then allow 20% of the interest as a relief, and give this relief by deducting it from the amount of tax that they calculated.

The effect is that if someone was paying tax at 40% under the current rules, his extra tax will be 20% of his finance costs.

If he was paying 45% under the current rules, his extra tax will be 25% of his finance costs.

If he was paying tax at 20% under the current rules, his extra tax will be anything up to 25% of his finance costs.

Gary Mason was banned from this site for confusing people by persistently posting wrong information about how the tax would work.

Reply to the comment left by "Appalled Landlord" at "08/10/2015 - 13:17":

Hi Appalled.
Do you think you could re-write Gary Dully's example so that it is correct and using Jerry's idea of the B & B owner? I would then like to pass it to Richard Dyson, as I think it shows the discrimination against us really graphically.
Thanks.

Oh, I just tapped in Richard Dyson's name to check if he had written anything and he has today:

http://www.telegraph.co.uk/journalists/richard-dyson/

Everyone should get on there and vote for CGT to be waived completely and spread this message everywhere you can think of.

Reply to the comment left by "Jerry Jones" at "08/10/2015 - 09:34":

Hi Jerry

Your first and third points only describe the effect on your finances as an individual. I think you also need to explain that it will affect hundreds of thousands of landlords who will pass the tax on to their tenants where possible in increased rents. Where that is not possible because of the limit on housing benefit, the poorest members of society will be evicted and put in “temporary” accommodation at greater cost. Regardless of which party your MP belongs to, he will see that this is madness.

I believe someone had mentioned that, Legal Route might be an option however this suggestion was rejected.

I feel, that, all those people who have signed petition, circa 32000 and if all of them had contributed £50 each then we could have had £1600000 and that's £1 Million Six Hundred thousand pounds. This would have been handsome sum to take this battle to courts.

I am not sure if there is anyway we can prompt people to make donations or at least those who have contributed to petition can be informed?

Reply to the comment left by "Ros ." at "08/10/2015 - 13:25":

Hi Ros

If Gary deleted “less 20% relief = £80,000” the example would be right.

Reply to the comment left by "Appalled Landlord" at "08/10/2015 - 13:17":

Appalled Landlord, you seem to be correcting everyone. Few months ago, you seemed to be citing that "more void periods you have more you will pay in tax" and that was until Mark Alexander corrected you and you understood.

Let others express themselves, we are not all Tax Champions.

Reply to the comment left by "Saeef Khan" at "08/10/2015 - 13:45":

That's not a very nice thing to say, Saeef. I can't say how grateful I am to Appalled Landlord for his brilliant expertise in this. He understands it better than the Treasury and HMRC put together. As for a few months ago, we were all so shell-shocked that we didn't know our arses from our elbows (pardon my French).
I think you should apologise. We are really lucky to have him here and I don't want him insulted so that he might not bother to correct us when we need correcting (which I often do).

Now, can people please go and vote on the Telegraph article. When I voted just now, only 34% so far had voted for CGT to be completely waived. I don't know if it will do any good voting on the article - but obviously Richard Dyson would be able to use this in a future article and it would strengthen the case for this.

Just voted although in rushing I couldn't initially see where as it was halfway down the article on http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11916423/Buy-to-let-investors-Let-us-off-capital-gains-tax-and-well-sell-to-first-time-buyers.html

Can the next person who votes for the full CGT waiver let us know what the percentages are for the 3 categories now?
I will ask the RLA to circulate the article and encourage their members to vote. Can someone else who is a member of the NLA also do this, giving them the link to the article? Although they almost definitely won't because the RLA are quoted in the article! But they should be asked to.

Reply to the comment left by "Ros ." at "08/10/2015 - 16:27":

I can't see anywhere to vote in that article