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

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Chris Byways

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15:16 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "steve p" at "22/12/2015 - 14:58":

FWIW, I bought an Indian restaurant earlier in they year that was VAT registered, but it was treated as a TOGC. A transfer of a going concern, and so long as I registered for vat, the seller did not have to charge vat, nor I pay and reclaim it. This is to prevent fraud, and helps cash flow.

The point is that was regarded as a Business, NOT the restruant, but the leasing of it to a tenant. However being on an FRI, I do not have to do repairs or insure etc, so less actual business than the hassle of ASTs, advertising, fixing blocked drains and loos.....

With better returns, I think there will be less interest in the PRS over the next few years, to the tenants loss. Unless rents go up to give the same return as other 'investments'.

I do hope Kingham doesn't read this, or he will say reclaiming the vat was a tax perk, and get on to his mate History George......... Grrrrrrrrrr! Twit.

steve p

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15:42 PM, 22nd December 2015, About 9 years ago

Totally agree, my plan is to pay off my mortgages then retire/become self employed sparky... The new tax encourages me to pay off my mortgages but then I will be paying so much tax that doing the normal day job will get effectively taxed at such a high rate there seems little point... Being self employed I can do just a little work and also avoid a lot of tax.

If I do find im in the market in 5-10yrs time and the climate is as expected I would definitely look away from PRS and more towards commercial properties.

Appalled Landlord

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16:05 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "steve p" at "22/12/2015 - 14:58":

Shares do not generate dividends. A dividend is a distribution of the profit generated by a company. The only time that the purchase of a share provides capital to a company is when it is first issued. Future transfers of the share do not affect the company.

It does not matter who does your decorating. Letting is a business. Clause 24 describes letting as a business 17 times.

The purpose of this thread is to campaign against the proposed tax grab, not muddy the water with spurious arguments. We dealt with the bogus borrow-to invest-in-shares comparison very early in the thread.

MoodyMolls

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17:07 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "Laura Delow" at "22/12/2015 - 08:39":

I read somewhere about the council tax new bands I think C will cover from 100,000 to 250,000 and be about the same cost. But the higher value properties will be increased , The highest band I think was 20 times current rate.

I am also aware there as been talk of a property tax on house value instead of council tax. Paid by the owner of the property not the tenant.
I thought this was due to lots of tenants not being able to afford to pay .

A council tax collector is always in town knocking on the doors and quite often the debt collectors are out.

I also think that OO are in for some taxes.

Chris Byways

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17:18 PM, 22nd December 2015, About 9 years ago

The new council tax valuation bands shall be—
(a)below £250,000;
(b)between £250,001 and £500,000;
(c)between £500,001 and £1,000,000;
(d)20between £1,000,001 and £2,000,000;
(e)between £2,000,001 and £5,000,000;
(f)between £5,000,001 and £10,000,000;
(g)between £10,000,001 and £20,000,000; and
(h)over £20,000,001;

This is from the Bill.
http://www.publications.parliament.uk/pa/bills/lbill/2015-2016/0011/lbill_2015-20160011_en_2.htm#l1g1

Seems a big range from a £30k property in Stoke to a £249k in Stoke Newington for perhaps a 2 bed terrace, that will both be in the same band.

MoodyMolls

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17:23 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "Chris Byways" at "22/12/2015 - 17:18":

Thanks Chris

steve p

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17:48 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "Appalled Landlord" at "22/12/2015 - 16:05":

I think this is the argument though, if we are a business as we think and if it states it in clause 24 then there should be no different treatment just because our business is property letting.

Though there are extra taxes leaved against oil companies and banks although these are still taxes on profit rather than income...

Personally I think unfortunately its a lost cause but seeing as rents look like they are rising for the prudent landlord who has not over leveraged I think there are actually profits to be made, there will also be an increase in requirement for temporary accommodation at a higher rate of rent when people do get evicted because of the tax...

I am waiting for a story where a landlord evicts a housing benefit tenant because with the added tax the rent does not cover the costs, the landlord turns the property into a temporary accommodation in the private sector and the council re-homes said evicted person back into the same property only at a 50% increase on rent.. Unlikely but it could actually happen with the lack of rental properties that we are going to see.

Were all pretty entrepreneurial, it just means we need to change the business model to suit the new environment... There are so many options, you just need to select one that suits you the best.

MoodyMolls

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18:18 PM, 22nd December 2015, About 9 years ago

MoodyMolls

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18:31 PM, 22nd December 2015, About 9 years ago

Barker’s fellow witness, Martin Wolf, the economist and Financial Times commentator, agreed that subsidising homeownership, rather than supporting the rental sector, was questionable, saying: “I cannot see any good reason for this.”

He said ultimately, the government is likely to have to provide more support for low-paid tenants. “To shift support away from rent for this part of society is likely to prove in the long run an unsustainable policy.”

Both Barker and Wolf were highly critical of the government’s policy, announced before the general election, of extending right to buy to tenants of housing association properties.
http://www.theguardian.com/society/2015/dec/01/osbornes-property-owning-criticised-housing-expert-kate-barker

Trendo

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18:50 PM, 22nd December 2015, About 9 years ago

Reply to the comment left by "David Price" at "22/12/2015 - 14:48":

Well i was thinking about redecorating my lounge with a nice obs/little wallpaper ...but the company that makes that is offshore as well , in fact i am getting so peed off with this that i picked up my phone to complain to someone anyone about it only to find the person on the other end was not based in the uk other so yet more unpaid tax, then realised i was using vodaphone who also dont pay anough tax ....
How many dependents have LL got ...a whole lot more than you F******* thought.

http://www.mobilenewscwp.co.uk/2015/05/27/vodafone-defends-corporation-tax-avoidance-despite-41m-profits/

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