Summer Budget 2015 – Landlords Reactions

Okay guys, can someone help with an article that is going to be posted comparing the UK tax treatment with the tax treatment of landlords in other countries? I need any volunteers to check the following countries and let me know if there is any tapering relief on CGT payable when selling rental properties in the PRS in the countries below. If you can even help with one or two that would be great as I need to insert a yes or no in a table. This could be an important article and so you will be doing your bit if you help out. These are the countries:

France
Germany
Denmark
Norway
Sweden
Finland
Austria
Ireland
Spain
Switzerland
Australia
USA

Reply to the comment left by "Martin Gardner" at "12/01/2016 - 10:36":

"Proposed changes:

From April 2016, notional 10% tax credit on dividends will be abolished.
A £5,000 tax free dividend allowance will be introduced.
Dividends above this level will be taxed at 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate)
Dividends received by pensions and ISAs will be unaffected
Dividend income will be treated as the top band of income.
Individuals who are basic rate payers who receive dividends of more than £5,001 will need to complete self assessment returns from 6 April 2016.
Impact

The proposed changes are aimed to tax small companies who pay a small salary designed to preserve entitlement to the State Pension, followed by a much larger dividend payment in order to reduce National Insurance costs. It appears that the government is anti-small companies, preferring workers to be self-employed.

.....

If your dividend income is received through shares in an ISA, as now, these remain tax-free and the dividend allowance will not affect this income"

So I conclude:

Therefore the optimum would be to introduce small communal REITs with 15+ properties, for a group of 'Private Housing Providers' and hold within an ISA, paying good dividends.

(Yes of course CGT and lower SDLT apply, but the price paid will be a fire-sale price, maximising dividends.)

There's more way than one to skin a cat

Reply to the comment left by "Ros ." at "12/01/2016 - 12:49":

Hi Ros,

Useful summary re Germany:
http://germany.alphare.net/pdf/German-Property-Tax-Overview.pdf

Notably - no CGT after 10yrs.
Up until 10 years it is treated as income.

Also of note:

Depreciation

Real estate is subject to tax depreciation on an annual basis. (Land cannot be depreciated.) Buildings are depreciated over 40-50 years, depending on the year of construction. (2% annual
depreciation applies to buildings constructed in/after 1925, 2.5% for buildings constructed prior to 1925.) This effectively lowers the annual tax payable in Germany.

Special rates apply to modernisation of listed (Denkmalschutz) buildings – modernisation costs can be depreciated over 12 years (9% p.a. for the first eight years and 7% p.a. in the next four years). Modernisation of not listed properties follows the standard depreciation rates.

IIRC inheritance tax is also treated very favourably but I cannot find the source info.

German PRS Review 2014 here:
http://www.bvc.dk/SiteCollectionDocuments/Analyser/The_German_Private_Rented_Sector_web.pdf

Reply to the comment left by "Dr Monty Drawbridge " at "12/01/2016 - 17:00":

Thanks a lot Monty. We can see clearly that UK landlords are at a massive disadvantage. I was vaguely aware of this before C24, and I could live with it, but GO has added insult to injury now. I believe we have to go on the offensive and these kinds of facts are very important to bear in mind. Some commentators, for example, believe that UK landlords are not over-taxed; they're wrong when we are compared with landlords in other advanced countries.

Reply to the comment left by "Ros ." at "12/01/2016 - 12:49":

I have been looking at Australia, So far its as clear as mud but will keep on looking. If I were to pull out of the UK that's where I will end up anyhow.

Reply to the comment left by "Darren Bell" at "12/01/2016 - 17:33":

Thanks Darren. It's just the issue of tapering relief on CGT that is needed as we have other information on the tax treatment of landlords in Australia. Thanks.

Reply to the comment left by "Darren Bell" at "12/01/2016 - 17:33":

We were approached a month ago by an Australian lawyer. They were encouraging wealthy people to go there, and the carrot was no inheritance tax.
So ok all the wealthy up sticks and go.
Where does that leave GO?
He will then have to tax the working class more heavily?
Blood on the carpet?

'Baroness McDonagh' seems to be another person who thinks she knows what is best for the PRS. I couldn't quite believe my eyes when I saw this Baroness had been talking on the subject in the Lords; I thought the wonderful Siobhain (who argues with landlords to get them to house the homeless and when the tenant faces eviction, no doubt for arrears and/or damage, she advises them to stay put) had been sacked and gone off to the other House. Instead:

[Siobhain] McDonagh, 48, is the sister of Margaret McDonagh, who was Labour's general secretary between 1998 and 2001 and is now Baroness McDonagh. The sisters share a home in Colliers Wood, south London.'

No doubt they dream up their anti-landlord speeches over a cup of Bovril.

Reply to the comment left by "david porter" at "12/01/2016 - 17:41":

Some countries have developed this unique idea... it's really quite extraordinary... what they do is... they actually encourage people to come along, build and invest, instead of taxing them to a standstill.

Who knows? Maybe one day this will take off here in the UK...

"Battle lines are drawn and pension plans for thousands hang in the balance"

This short video report by Reuters is one of the sharpest news items on the future of the housing market thus far... A must watch!

http://uk.reuters.com/video/2016/01/12/uk-private-landlords-under-attack?videoId=367008088&videoChannel=75&channelName=Top+News