Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 10 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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Dr Rosalind Beck

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22:04 PM, 14th July 2015, About 10 years ago

I've just emailed my local Labour MP. Fingers crossed. We need to make some noise now.

Jack D

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22:08 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:00":

So Appalled Landlord would the example that Simon provided be incorrect?

That only relief on 20k of the interest would be able to be used that tax year?

Appalled Landlord

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22:09 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Colin Dartnell" at "14/07/2015 - 21:40":

Thanks Colin.

So on Gary's figures his personal allowance of £10,600 will be wiped out, and he would pay an extra 40% on this, or £4,240, as well as the extra £10,200 I calculated earlier?

Appalled Landlord

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22:15 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Jack D" at "14/07/2015 - 22:08":

Hi Jack

I would doubt that Simon's example is wrong. Which page is it on?

Phil Landlord

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22:16 PM, 14th July 2015, About 10 years ago

Just got in and seen how busy you have been.

1) Don’t add interest back on to income…..just don’t deduct it in the first place.
Anyone writing to the government 'saying you are taxing a cost' – will be told this is incorrect and your argument is lost.
However, in real terms it is effectively the same thing with the same net result….but be clear, technically it is not the same thing.

2) it maybe possible to pay tax when these changes take effect when there is no ‘real old type’ profit IF you are a HRT (probably other income but not necessarily)
It is not possible to pay tax if no rent is collected as described in some of the scenarios described earlier in this forum.

3) it will mess up people ‘taxable income’ and a consequence will be CSA payments and numerous other things. And on that basis the government MAY tweak things but I am sure the principal will remain.

4) have fun. I am sure the next year or so there will be lots of tweaks, lots if ideas to avoid paying it and lots of comments on this great site.

Jack D

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22:22 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:15":

Page 59.

He stated that the amount of interest that can be offset is limited to the rental profit amount (income - costs) in that case as that is lower of the figures. (25k v 51k)

Apologies if i'm misunderstanding and furthering the confusion for folks on this.

Dr Rosalind Beck

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22:28 PM, 14th July 2015, About 10 years ago

Every time I see a new message in my inbox it seems to involve some kind of in-fighting, Can we all just agree that this is a terrible proposal for landlords, whichever way you look at it, and can everyone get that message out - as I said, it's important not to use all our energy here. We have to at least get letters off to people in Parliament who might be able to stop this thing in its tracks.

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22:30 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 21:45":

Appalled Landlord, look below what you say"

"We will pay tax on a much bigger figure because HMRC will not deduct finance costs from rent received when it works out what it considers to be our profit."

That's exactly WHAT I WAS SAYING BUT YOU KEEP CONTRADICTING YOURSELF! Please for God sake!

Appalled Landlord

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22:33 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Gary Mason" at "14/07/2015 - 21:51":

Hi Gary

We will not continue to pay tax as it has been, because it will be calculated on a much higher figure.

Appalled Landlord

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22:42 PM, 14th July 2015, About 10 years ago

Reply to the comment left by "Jack D" at "14/07/2015 - 22:22":

Hi Jack

Simon's example is correct, but it is completely different from the one I had worked through.

In the latter, the interest was £51,000 and the profit was higher, at £84,500. So the relief would be given in full.

You quoted the profit figure of £33,500, which is what it would be under the current rules.

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