Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "S H" at "18/03/2016 - 20:22":

I think I need to get a new accountant! I have a small portfolio of 11 properties - all are mortgaged and at present I am a low rate tax payer. I have been in touch with my accountant on two occasions to find out whether this new tenant tax is going to affect me and on both occasions he has told me in no uncertain terms that I am being silly and that the new tax is not going to affect me as I am not a higher rate tax payer - he reiterated that the new tax only affects higher rate tax payers. I, on the other hand. after following the comments closely on this forum, am convinced that I am one of the landlords that will be pushed into the higher rate tax bracket. I am convinced that there are a lot more landlords out there, like me, who are being wrongly advised by their accountants - some accountants have simply not grasped exactly what is going to happen and have not looked into the matter thoroughly enough. I have heard of several other landlords who are not aware of the new tax.

Reply to the comment left by "Arthur Allen" at "18/03/2016 - 20:41":

Hi Arthur.
You should complete the spreadsheet (above in the main article) and you will find out. I am sometimes a higher rate and sometimes a basic rate taxpayer and as I pay out a lot in interest payments, this will now magically be deemed to be part of my profit and I will permanently be a higher rate taxpayer (unless I get shot of some of my portfolio in the next few years and pay down some of it).

Hi Arthur just add ur 80% of your total annual mortgage interest to your last years net profit and this will give u this income u will be taxed on would hazard a guess it will tip u close to the high rate as mortgage interest is by and a way a landlord with mortgages biggest cost

when looking for an accountant we met with about 5 different local ones and asked if we could have a free 15 minute consultation to talk about our needs and find out about their service and fees. I would always recommend doing that as you get so much free advice and get a feel for them and their enthusiasm.
you'll soon know if yours is any good once you have spoken to others.
Id take your previous tax return the policy and your portfolio accounts to each one and ask for their take.,you'd be surprised how everyone gives different advice, we chose somebody who had lots of landlords on their books so they were up to date with legislation. If they have property that's even better.

I really think the mortgage express situation has a massive role in this

They want to run down the mortgage book but are finding it hard as interest rates are going nowhere and many landlords are in negative equity so cannot refinance . So think about it put landlords under pressure through tax and they either sell but many can't so if they go bankrupt the properties get repossessed by UKAR as they are known now and who runs UKAR formally mortgage express u guessed it the government. They could be setting up associations as we speak to gobble up large portfolios and running them as social housing. It would be a really cost effective way of being perceived to be creating homes without funding building projects know it sounds out there but it is a distinct possibility

Reply to the comment left by "NW Landlord" at "18/03/2016 - 20:47":

Hi N W L

You need to add 100% of the finance costs back to the real profit as they will be completely disallowed in 2020/21. Tax will be calculated on the inflated profit, then 20% of the finance costs will be deducted to find the tax payable.

The spreadsheet does all this for you.

Ian Duncan smith has resigned can't cope with that fools horrible policies and hurting the most vunerable how long is this man going to be holding the purse strings

Reply to the comment left by "NW Landlord" at "18/03/2016 - 22:05":

Call me cynical but ....

Could it be a smart political move on his part if Brexit happens?

Question is, does he have his eye on the top job with Boris as Chancellor or would it be the other way around?
.

Which ever way, the wheels are coming off!!

I sent the following extract from IDS's resignation letter to the two MP's in my area and asked if they needed me to hand them their swords to fall on or do they not have the honour and spine of IDS?

'I am unable to watch passively whilst certain policies are enacted in order to meet the fiscal self imposed restraints that I believe are more and more perceived as distinctly political rather than in the national economic interest".

"I hope as the government goes forward you can look again, however, at the balance of the cuts you have insisted upon and wonder if enough has been done to ensure "we are all in this together".

What is very annoying is that politicians can come along and cause massive issues and later swan off into the sunset - I am talking about Osborne for when that happens. I am saying this before free speech is outlawed, taxed or even too highly regulated to make it viable (for our sector only of course!)