Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "money manager" at "26/04/2016 - 09:43":

I understand that, and also that the lender can say that they pay interest on the money that they use to make the loans and that is taxed etc etc.

The point is that I would pay more tax on the rental income from an unencumbered property than I would from an encumbered property, that is I am not treated more favourably on the unencumbered property.

Clause 24 may be wrong, but to say an individual landlord paying more tax on rental income as they do not have a mortgage is being treated more favourably is incorrect.

Just had the local conservative rep knock on my door. I'm afraid he just received both barrels and a marching order.
Parting question from the rep. Who will you be voting for? My answer Not you pal.

Same at my mum and dads house yesterday my mum sent him packing and they have been Tory voters all there lives

Reply to the comment left by "S.E. Landlord" at "26/04/2016 - 10:52":

Hi SE Landlord

Regardless of whose fault it is, the fact is there IS a housing crisis (availability & affordability) in certain parts of the UK, including many in the area that your username suggests. So on one hand I don’t blame the govt for trying to do something. On the other hand C24 is not the right way to do it for countless reasons already discussed.

By favourable treatment, that C24 will give, I meant:

- Corporate LLs: Comparatively lower taxes, competitive advantage in the market facilitating expansion of their businesses.

- LLs with unencumbered properties: Competitive advantage in the market facilitating expansion of their businesses.

Even the govt eventually realised this so later introduced the additional SDLT as an afterthought (although bulk buyers can mitigate some of that).

Reply to the comment left by "Mark Shine" at "26/04/2016 - 11:16":

My comments relate to individual landlords and not corporate where the tax treatment is different.

In your earlier post you used the phrase "deserve favourable treatment from the government". I would argue that the government is not giving individual unencumbered landlords favourable treatment via Clause 24 as they pay more tax on the same rental income. Nor is it giving them a competitive advantage, they may have that by having funds available to purchase property but that is the position with or without Clause 24.

I have both encumbered and unencumbered properties and I do not feel that I am receiving favourable treatment from the government on the unencumbered properties.

I don't think that we are going to agree on this and therefore let's agree to disagree.

Reply to the comment left by "S.E. Landlord" at "26/04/2016 - 10:52":

I think we are in agreement. Tax should properly be levied on the asset that generates it. If I own a whole house/factory/ manufacturing company or whatever I should be taxed on it's entirety. If I "own" half a house by virtue of a 59% LTV mortgage or half a company by being one of two shareholders the same should apply. That C24 makes me taxable on someone else's asset is the root cause of revolution.

Reply to the comment left by "money manager" at "26/04/2016 - 12:47":

I am not disputing that, I would just ask that the arguments are focused on the facts rather than if somebody else is better off because they do not have a mortgage. The campaign against Clause 24 is looking for support from all sectors of the market and if part of the argument is that those without a mortgage are better off and Clause 24 should be replaced with a tax system that also penalises them then you will lose the support of that sector.

Reply to the comment left by "S.E. Landlord" at "26/04/2016 - 13:30":

Totally agree, no "beggar thy neighbour" tactics including any notion of C24 applying only hencforth; a bad tax is a bad tax.

Reply to the comment left by "S.E. Landlord" at "26/04/2016 - 13:30":

Yes it is correct that in case of C24, the State Aid appears to be being granted to corporate landlords, which I believe was one of the key areas the lawyers will challenge the govt on.

Corporate LLs will be unlikely to be able to bag all the properties (including HMOs) that FTBs & OOs don’t buy. But as to the expansion opportunities and transfer of some rental properties from encumbered LLs to unencumbered LLs that C24 will facilitate….. I agree: let’s park that one for the time being and just agree to disagree.

As you say, the campaign needs support from all sectors of the market to add to the 629 backers who have pledged so far at http://www.crowdjustice.co.uk/case/tenanttax/

The first 50k target has been hit onto the stretch target 250k well done everyone hopefully that will escalate up to and after June 10th