Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Gary Mason" at "14/07/2015 - 22:30":

I have not contradicted myself, and there is no need to shout. Many of us have struggled to explain things to you, but the others have given up. So will I.

Re: int/finance costs ..... consider 2 piles of cash or 2 columns on a spread sheet, one is labelled allowable expenses, the other is labelled taxable income. have a look which pile/column you mort int/finance exps are in.. to crystalise in your mind exactly what is what is happening here.

.....then turn to the guy next to you who has a BTL portfolio "Guy Ltd" and look which pile/column his mort int/finance exps are in.

no LL are not being directly taxed on mortagage in/tfin costs ....but they certainly ARE being INdirectly taxed on their mortagage in/tfin costs.

Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:42":

Thanks Appalled Landlord, can see that now.

Thanks for the clarification and apologies again if I caused any further confusion to anybody.

Reply to the comment left by "Ros ." at "14/07/2015 - 22:28":

Yes, I am replying to my own comment, as it has been completely ignored. Is it perchance because I am of the female persuasion?
Please can we get back on track and come up with our plan of action, what we are doing as individuals to get our message out and what we will need to do as a group? Otherwise this crucial thread is going to die a slow painful death before it's achieved very much at all.

Reply to the comment left by "Ros ." at "14/07/2015 - 23:17":

Hi Ros , i dont think anyone is ignoring you , but agree we all got a bit sidetracked earlier on!

The fact tha tax due on zero profit is zero seemed to calm a few people down ....but it would appear to me that the point has been missed that if you have zero profit on the new regime ...you have in fact rrun at loss equilvalent to youmort int/fin payment already to arrive at zero.. ...i am also in cardiff !

Reply to the comment left by "Ros ." at "14/07/2015 - 23:17":

Ros, I think there are too many smarties in here everyone is busy making their own points which is good to certain extent but not when they keep changing their goal posts.

In my opinion, the extent of damage interest relief restriction will cause is well underestimated and misunderstood, time will tell.

Reply to the comment left by "Ros ." at "14/07/2015 - 23:17":

Hi Ros

I've had guests all evening and am now just catching up.

There are quite a few post in the last 5 pages where members have referenced their communications with their MP's. I don't think anybody is ignoring you comment, they are writing to their MO's and then rejoining the debate.

I urge anybody who has yet to contact their MO to do so ASAP.

You are right, the more letters they get the easier it will be for them to comprehend the scale of the problems associated with this tax hike.

It's important we all make our point in our own way though, otherwise if it is templated we must expect templated responses.
.

Reply to the comment left by "Simon Dewsberry" at "14/07/2015 - 23:22":

Simon,

I can categorically tell you that is not the case. I have in writing from Accountant that, your interest payment is added to your income and you are required to pay tax even if you have no cash-flow.

This Accountant is no Joe Blogg and he has previously met George Osborne as well Alistair Darling and he has been involved with treasury in past to form legislations.

You can ask a direct question from Megan Shaw, would you be required to pay Tax on your finance even if you did not make any profits and her answer would be yes.

i am still considering the overrall impacts ..which are far more reaching than wealthy LL paying a couple of extra quid in tax...before penning a letter to send to mps, Georgie Porgie and Hmrc for starters .....

here are some other issues that got lost in the protracted earlier discuions

As landlords will have their profit & taxable income artificially inflated (by some very large numbers for some) there are going to be very serious knock on effects:

non tax payer with 1 flat for eg maybe on benefits or carers allowance, with income limited and hours worked limited to qualify, will suddenly get 5k (mort int) added to income as finance costs no longer deductable - carers allowance rules breached as "income too high" so carers allowance withdrawn.(3k out of pocket) and pushed out of 0% tax band

people on more income 11-43 K who may rely on child benefit, working family tax credits, child tax credits, housing benefit ...when their income is artificially inflated by the new regime will cross all the kill points for these benefits and lose them all , then of course have a highr tax due to pay hmrc as well

Anyone driven through the 100-121K income bracket will lose their personal allowance of 11k and pick up 40% in the form of more tax to pay

anyone pushed up past 150k with thru artificial income inflation will of course get themselves a bit more tax to pay at 45%

CSA payments are calculated on percentage of income (apparently) so more chaos there then

20% tax payers wont be affected .......really ???11k to 43K will see most benefits assistance instantly removed for all the families of these LLs, they are going to affected more then anyone else in percentage of income terms with all the knock on effects which no one seems to have considered including hmrc ...or maybe they have ?

Problem is most people wont know about any of this until their tax bill lands in 2017 and onwards ....WAY TOO LATE PEOPLE ...

meanwhile - shop owners & various other business run by sole traders(& ltd companies) continue to claim their interest payments in full against profiits, ltd companies , housing assoc and institutional landlords all continue as before claiming 100% with no adverse knock on effects, ...the individual LL had been singled out in a grossly unfair manner. I do not think this has been properly thought through by the George & co and needs withdrawing immediately.

Reply to the comment left by "Appalled Landlord" at "14/07/2015 - 22:46":

Appalled Landlord, I was merely waking you up not shouting...you are a bit too ambiguous and seem to contracting yourself...one minute you are saying that, interest won't be added to your income but next minute you are saying that, more interest you pay more tax you will have to pay. FFS.