Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Saeef Khan" at "06/12/2015 - 21:02":

You wouldn't put it past the snake would you

He's treating us like bloody drug dealers or something

I equally concur with Mark Alexander and I hope I don not contradict myself that if small number of people are using strategy recommended by Mark then it is unlikely to catch treasury's attention.

However, since it is fairly new tax, wait and see approach may be advisable.

Reply to the comment left by "Saeef Khan" at "06/12/2015 - 21:02":

It would be impossible for the Chancellor to apply the same rules to companies because the starting point is completely different.
.

Reply to the comment left by "KATHY MILLER" at "06/12/2015 - 20:30":

Thanks Kathy

Reply to the comment left by "ray selley" at "06/12/2015 - 17:23":

Except the new stamp duty tax. That will reduce the ability to build a portfolio to newcomers like me to a trickle. I too believe c24 will not have as an adverse affect as people think.....as I believe many landlords are unencumbered or have enough slack in debt asset ratios to be able to draw debts down to more manageable levels. New entrants will just go Ltd. The real killer to ambitious growth plans is the stamp duty tax which will act as a real drag on cash flow during the acquisition cycle of portfolio building

Reply to the comment left by "NW Landlord" at "06/12/2015 - 21:07":

In the present climate drug dealers rank above landlords.

As we all know:

'landlords rush to set up limited companies'
https://www.introducertoday.co.uk/breaking-news/2015/12/buy-to-let-landlords-rush-to-set-up-ltd-companies

Will GO or his bosses, many of whom are looking to get a larger piece of the PRS action realise that their C24 'clipping wings' tax grab attempt was so extreme that it may actually backfire and encourage more LLs to discover some of the tactics that https://en.m.wikipedia.org/wiki/Osborne_%26_Little and others have been happily doing for years?

http://www.dailymail.co.uk/news/article-3152536/Chancellor-George-Osborne-s-family-firm-6million-property-deal-developer-based-tax-haven.html

Increase in large scale rental schemes

Not all landlords will be affected, but one of the biggest policies to be aware of, both nationally and locally, is the investment in Build to Rent schemes. The government has pledged £1 billion to developers to help them unlock stalled building sites and developments, where funding to build cannot be secured from banks. Properties are expected to be built fairly quickly on these sites - within a matter of years – and no doubt in time for the next election!

The idea behind the schemes and funding is for developers (including housing associations) to build properties and then sell them to an institutional investor for long-term rental. This type of deal is already being done; for example, Berkeley Homes has built several developments and sold them on to the Notting Hill Housing Group.

This particular scheme has £90 million to invest in a private rented sector portfolio. Other developments are expected to be built in Hounslow, Lewisham, Barnet, Hackney, Harrow, Croydon and Tower Hamlets.

In the main, these properties will be aimed at reducing housing waiting lists, so if you're renting purely to professionals, the scheme is less likely to affect you. However, if you rent to tenants on benefits, these properties may provide serious competition and you might have to increase the quality of your property so you can compete with new builds that have been designed with the tenant in mind.

- See more at: http://www.directlineforbusiness.co.uk/knowledge-centre/guidance-for-landlords/how-might-government-housing-policies-affect-your-buy-to-let#sthash.Op2z4wa2.dpuf

http://www.directlineforbusiness.co.uk/knowledge-centre/guidance-for-landlords/how-might-government-housing-policies-affect-your-buy-to-let

Reply to the comment left by "Mark Alexander" at "06/12/2015 - 20:10":

Mark - my initial layperson's concern would be that a transfer of 100% of the beneficial interest in one's property portfolio in to a company by deed of trust using S162 covers the ability to transfer "trading" assets into a company and if so, what if a portfolio of property is managed primarily by agents? Surely these are investment assets set up to give an investment return?

Reply to the comment left by "Laura Delow" at "07/12/2015 - 08:35":

Laura,

You are correct, as based on my enquiries it does transpire that, properties should be managed by company you are incorporating into.