Summer Budget 2015 – Landlords Reactions

Wait a minute.....am I hoping for too much here? There's some subtle wording in the amendments which appears to indicate that partnerships be treated the same as Ltd Cos & not as individuals - see copy/pasted relevant section in transcripted speech "The Government have tabled five amendments to the clause. Amendment 22 ensures that all companies are excluded from the restriction, even when carrying on a property business in partnership."
Does this mean husband & wife for example are a partnership?

Reply to the comment left by "Laura Delow" at "14/10/2015 - 16:13":

I assume it meas LLPs are treated like LTDs

Reply to the comment left by "Laura Delow" at "14/10/2015 - 16:13":

Clause 24 will reduce the inequity by restricting finance cost relief to the basic rate of income tax—20%—for all individual landlords of residential property. It will unify the tax treatment of finance costs for such landlords, including individual partners of partnerships and trusts. The change will ensure that landlords with the largest incomes no longer benefit from more generous rates of relief.

I think it means partnerships will be hit

Reply to the comment left by "Nervous Nigel" at "14/10/2015 - 13:37":

The petition page clearly states that the information is only not shared and only uses for purposes of the petition. Data protection laws are quite strict and I would be very suprised if data from petitions where made available to hmrc.

Reply to the comment left by "KATHY MILLER" at "14/10/2015 - 16:41":

Hear what you say Kathy but is this an amendment that now includes partnerships be treated as Ltd Cos as it reads "Amendment 22 ensures that all companies are excluded from the restriction, even when carrying on a property business in partnership" ?
In response to Kathy Evans reply assuming I'm wishful thinking on the above amendment, if what this means is LLP's are to be treated the same as Ltd Cos, then surely there's no need to transfer the assets/property & therefore no CGT or SDLT liability & no change from the lender's perspective?

Reply to the comment left by "Laura Delow" at "14/10/2015 - 17:28":

@Laura,

My understanding was that it referred to partnerships consisting of an individual with a Ltd Co NOT a man& wife partnership (or any partnership just between individuals).

I agree BUT why the subtle amendment? Plus Kathy Evans raises a valid point re LLP's?

I submitted a similar question and they essentially said they hadn't considered LLs who would become HRT's!

"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."

I had another rather lengthy conversation with an Accountant whom I have been attempting to speak to for last couple of weeks.

His view is same that there will be an allowance for around £50K to spare landlords with average sized 4-6 mortgages. (Also stipulated by Megan Shaw that, landlords with 4-6 properties will no pay further tax).

This should cover borrowings of between 800k-1.1 Million £'s...if it does materialise.

For husband and wife it should total £100K interest.

Reply to the comment left by "Barry Fitzpatrick" at "14/10/2015 - 16:05":

Barry, I agree, I do not think they spared a minute to read any submissions. They've had preconceived ideas. However, I do think that, at the end of process they are likely to iron out any discrepancies.