Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Jarrod Oliver" at "07/12/2015 - 16:08":

Good question Jarrod. Does anyone know?

An LLP is treated just like an individual landlord for the purposes of clause 24.

However, they do have special exemptions on SDLT when they incorporate.

Before you rush off to create an LLP prior to incorporation though, check out the anti avoidance rules s75 a to c in the ITA.
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Reply to the comment left by "David Price" at "08/12/2015 - 07:28":

David I see this going the way of cars,

You will have to register your car at the national house licensing agency (something like the DVLA) and once you hold of a certificate of ownership (akin to a V5) you are legally required to pay the tax on the house weather you rent it, live in it or anything else.

etc,etc,etc

Reply to the comment left by "KATHY MILLER" at "07/12/2015 - 19:21":

Hi Kathy.
Yes, I saw his interview on Sunday morning. I thought he was a bit of a moron. My immediate thought about wealth tax is that since mortgage lenders often 'own' the bulk of the property in effect - and have rights to seize it for example, if the mortgage isn't paid, that they should be billed for their share of the 'wealth.' (of course, they won't be)
Wealth tax, like C24, also pays no attention to a person's ability to pay - so an old person with practically zero income in a fancy house would not be able to afford it. Having said that, the way they can of course get around that is to have it only apply to 'private landlords.'
The annoying thing about the silly git's intervention is that it might give GO the impetus to bring something like that in next; as we know, he likes to steal the other parties' ideas (although imposing a wealth tax is hardly a new concept) - to take the wind out of their sails.

Reply to the comment left by "Ros ." at "08/12/2015 - 09:15":

Let's hope this idiot never gets into a position of power.

Like most politicians (of any political persuaion as GO has ably demonstrated) they have no idea how business works.

Reply to the comment left by "Barry Fitzpatrick" at "08/12/2015 - 10:08":

Hi Barry. Yes, they have no idea how business works or much else, it would seem. I also saw Heidi whatshername on the same programme - the Tory who rebelled over tax credits in her maiden speech. She said that most MPs had not understood how the tax credits change worked - and that she hadn't until she was on a committee specifically looking at the details of it. It then clicked.
I believe the same is true of C24. The majority of MPs don't have a clue, despite all our efforts. The majority of journalists also haven't 'got it' as far as the extreme impact on portfolio landlords goes. Ditto many landlords.
It is so outrageous that I think they think we are being melodramatic and that it can't be that bad... Aside from banging a few heads against walls, we just have to keep getting people to understand. When the data on rent rises, evictions, drop in BTL lending etc. come in, they might slowly twig.

Reply to the comment left by "Barry Fitzpatrick" at "08/12/2015 - 10:08":

This has also completely shifted my perception of politicians. As in rather than seeing them as simply governing the country for its own sake, I they appear in my eyes to be playing off some sets of the population against others and adopting a predatory/exploitative attitude towards people and business.

This goes far deeper that property. How can we openly set up or conduct any kind of business when Government behaves so arbitrarily and capriciously? On the basis of this, even if the current lot don't go on politics-driven warpath, you can't rule out the next party to get in making dramatic "reforms" and utterly destroying your business.

This is supposed to be a country where the political classes can be trusted to maintain stability and not behave in this way. Now they've gone the other way, and revealed themselves to be a danger we must be weary of.

Reply to the comment left by "Jonathan Clarke" at "07/12/2015 - 09:08":

I don't think confrontation would be a good idea, imo it is way better if things are calm and friendly and the money silently flows towards us in the meantime.

I also think you slightly overestimate your power. You need your tenants more than the tenants need you.

Evictions are only a nuisance for them - most of them are constantly aware that they might need to move at short notice. They won't like the idea, but it is not catastrophic for them at all.

But for you it might be, you cannot leave the houses empty - you need to pay the bank every month. If you can't pay, you can say hello to your credit history, remortgaging etc...

This union is a fantasy, if these kind of things could be done, all poor people in the uk would say tomorrow we stop work, unless you give us double wage. Or millions of tenants could do an union and stop paying their rents. It is not possible.

There doesn't appear to be a solution to the current housing crisis.
The Government are not stopping net immigration of 330k per year which means that any new house builds will be taken up by people not even currently resident in the uk??

http://www.bowgroup.org/sites/bowgroup.uat.pleasetest.co.uk/files/The%20Bow%20Group%20-%20The%20UK%20Housing%20Crisis%20%282015%29%20FINAL.pdf

According to this article it is foreign investors that are driving up UK house prices more than any other factor.If the supply of houses is increased, you will get more foreign investment which will push prices back up.

Reply to the comment left by "Ros ." at "08/12/2015 - 10:27":

Sorry to say, but I am not sure it is them who have no idea about the business.

In case of a "classic" business if regulations or demand changes, or the price of the product goes down, you can just stop it or scale down any time, liquidate the assets and that's it. Unfortunately in case of a btl business you can't stop paying the bank, or scale down the payments, that is a risk unique to this business and should be considered carefully.