Summer Budget 2015 – Landlords Reactions

My advice to everyone is buy as many of your own properties into a limited company (with your partner as shareholder) for cash over the next 5 years, transfer your main residence to your partner, and then start contributing any profits into a pension. The worst possible outcome is you have to hand the keys back on your remaining properties and go personally insolvent. Some people will no doubt lose everything the way things are going - you can at least protect some of it.

I copied and pasted following from one of Accountant's website, it seems as if come 2019 new CGT rules will not adversely affect Residential Landlords unless you sell holiday home.

The only exception is that, you have to report CGT within 30 days but you will still pay in normal way following the end of Tax year before 31 January. Please see below:

"For those who are registered for self-assessment taxation there is the option of paying the CGT (Capital Gains Tax) in the normal time frame for paying all self-assessment tax liabilities ie before 31st January following the end of the tax year in which the disposal occurred. This will normally include all landlords, but if an individual who is not a landlord sells his holiday home he has just 30 days from the date of completion of the sale to complete and submit this rather complex form, calculate the tax due AND PAY IT. But don’t be fooled – everybody will have to submit the return and calculation of CGT within 30 days of completion whether there is tax to pay or not and whether they are opting to delay payment or not."

http://www.dailymail.co.uk/news/article-3355384/Banks-bring-tough-checks-buy-let-mortgages.html

To get a mortgage is to get tougher.

Headlines in the Mirror yesterday were something along the lines of

'Tory war on tenants'

The only relevant link I can find today is this:
http://www.mirror.co.uk/news/uk-news/sign-save-council-homes-petition-6997720

Reply to the comment left by "Mark Alexander" at "10/12/2015 - 09:57":

My concern too Mark should Labour get in to power on 7th May 2020, especially if this is the hard left. Having positioned myself not to be caught by Clause 24 etc, my next line of thinking is what to do if the unthinkable happens under a) a Tory Government (not long ago I would have thought Clause 24 unthinkable!) as well b) a hard left Labour Government whereby we could see i) the reintroduction of Investment Income Surcharge at say 15%, and/or ii) a property income surcharge iii) increase in income tax rates for higher rate taxpayers (HRT) and/or more HRT bands which a hard left Labour party crucified us with in the 70's iv) higher rates of CGT in line with one's highest tax band last experienced prior to April 2008 then between 1988/89 & 2007/08, or a flat higher rate last experienced a 30% between 1980/81 & 1987/88, or worse still; CGT on the sale of one's main residence ie clobber the asset rich v) RTB in the PRS with enforced discounts vi) cash no longer accepted as usable tender (not so unthinkable) vii) negative interest rates on deposits (also not unthinkable at all) viii) a raid on pension funds eg abolition of tax free cash, tax relief on pensions restricted even further, further attack reliefs enjoyed within pension funds (Gordon Brown in 1997 abolished ACT relief in pensions costing Britain £100bn), ix) Inheritance Tax back to 70% previously known as Capital Transfer Tax until the mid 1980's....the list goes on with some smaller hurts but some too frightening to contemplate. One only has to read the various discussion documents published eg the Institute of Public Policy Research, to realise there's more yet to come
Like others, I don't want to be wise after the event, nor live in fear as this only drives panic decisions, but I have to be realistic in that I know there's more to come. I have various plans floating around in my head, some of which I can't believe I'm contemplating but I have to think outside the box because the box size & shape keeps changing without warning & will continue to do so (with ever increasing speed) whether controlled by a Labour or Tory party.

Reply to the comment left by "Laura Delow" at "12/12/2015 - 09:45":

2 certainties: death and taxes?

Reply to the comment left by "Seething Landlord" at "12/12/2015 - 10:05":

Meanwhile Osborne, Starbucks, Amazon . . . etc will avoid most of the taxes which the rest of us have to pay.

Reply to the comment left by "Laura Delow" at "12/12/2015 - 09:45":

What a bundle of joy you are this morning Laura!

Please don't take offence, I've had similar thoughts in recent weeks.

Whatever Government we end up with next time around, chances are they they will start with money. Second point is the housing crisis will be much worse than it is now because the population is growing whilst taxation policies are reducing investment appetite.

Unless the middle east crisis escalates into a worldwide conflict (which a possibility) then the housing crisis could well be at the top of the list of things to solve. The mistakes occurring right now will be realised and even if they are not corrected I suspect more will be done to build more houses and the PRS will be left alone.

I appreciate that might be wishful thinking but I'm trying to be positive today.

Chin up!
.

Hi Everyone,

Check out this article in the Mail:
http://www.dailymail.co.uk/news/article-3356692/Fill-tax-returns-four-times-year.html

It's as if this government has an official pact with the corporates to cannibalise small businesses.

Reply to the comment left by "Mark Alexander" at "12/12/2015 - 10:33":

I know...I do sound like a hybrid of Victor Meldrew & Private Frazer don't I? Your mouth to G_d's ears Mark. Meanwhile I'd rather try and plan for the worst (within reason - am not building a bomb shelter - yet!) & hope for the best.