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

To calculate the impact of this policy on your personal finances download this software


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Appalled Landlord

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14:46 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Simon Roads" at "20/07/2015 - 14:31":

Hi Simon

At least she is warning landlords that this measure is going to cost them significantly more money as from 2017.

The author was our best journalist ally in the West Bromwich affair, and wrote the two articles about it.

It is up to us to show her what the effects will be, and I suspect that Mark Alexander is already working on it.

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14:51 PM, 20th July 2015, About 10 years ago

A little bit more sensible but still not addressing the true cost to LL:
http://www.telegraph.co.uk/finance/budget/11724804/Buy-to-let-How-todays-Budget-will-affect-landlords.html

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Appalled Landlord

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14:56 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Simon Roads" at "20/07/2015 - 13:07":

And solicitors need to warn people who are in the process of buying currently.

Mark Alexander - Founder of Property118

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15:34 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "20/07/2015 - 14:32":

It has been in every Newsletter recently. Short of knocking on their doors I don't know what else I can do!
.

Kathy Evans

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16:16 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "20/07/2015 - 14:56":

What amazes me is the number of commenters on these newspaper articles who think that they won't be affected because they are basic rate tax payers (even though they do have mortgages). And also the degree of hate for anyone who is thought to something that the commenter doesn't have. How can anyone think it is ethical to pay tax on business costs?

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17:06 PM, 20th July 2015, About 10 years ago

John & Julie are married and together run a sizeable rental property business. They have not run this through a limited company due to difficulty in obtaining finance for purchases with ltd co status.
16-17 20-21
Rental income 600k 600k
Exps 200k 200k
Int 350k 0
Net Rental Profit 50k 400k
Personal allowance 22k 0

Taxable income 28k 400k
basic rate(x2) 5600 17200
40% 0 85600
45% 0 45000
147800
Less 20% relief (70000)
net tax liability 5600 77800

Tax increase 0 72200
effective rate on "real" profit 11.2% 147.4%

Although John and Julie spend 70 hours a week running the business between them (and their cash return is modest) that is because they have ploughed most of their returns into building the portfolio and taken risks to allow them to grow their business. The current business model is now unsustainable.

Worked example sent from my acc !

The current business model is now unsustainable....... Thanks George, you are soemthing else.

Dr Rosalind Beck

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18:27 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Simon Roads" at "20/07/2015 - 17:06":

Thanks for the example Simon. I'm hoping someone else can put up a few more examples, all showing different scenarios - but all where it is a private landlord with at least one BTL mortgage. I think these calculations in black and white can help our case.
Maybe someone can work out my situation to use as evidence?
Myself and my business partner's joint figures for last year:
Rental income: 260,000
Mortgage interest: 80,000
Estimated annual maintenance etc costs: £80,00
Net rental profit: 100,000
(no other income)
And thanks also to Simon Lever - you're quite right I need to tone down my language a bit and I will. It's just difficult, as I am very angry and worried.
Thanks also to Appalled for complimenting my letter. We all need a bit of encouragement to keep this campaign going.
Chin up and let's thrash this thing.

Mark Alexander - Founder of Property118

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18:31 PM, 20th July 2015, About 10 years ago

It has just occurred to me, on the basis this legislation relates to residential property; where does that leave the likes of care homes, pubs, 365 day a year use residential parks, ground rents, shops with owner manager accommodation, in fact any semi commercial business/property which has a residential element to it?
.

Phil Landlord

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18:45 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "Simon Roads" at "20/07/2015 - 17:06":

Thanks Simon. The challenge before us (myself included)....what is the debt if the interest is £350k a year in your example?
Say at 3.5% if think around £10m?

Work that back then let me know if this sounds sensible to the man in the pub or a daily mail reader?

My tone is changing because the more I read, the less anyone acknowledges ANY challenge To our model.

Priority for me will now be to reduce debts in a timely manner over next 10 years.

Will still fight the fight - but I am also challenging myself and my model too.

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