Summer Budget 2015 – Landlords Reactions

Dear all,
I am not sure if that should be in this particular thread or not.
I just got an email from NLA (I am a member):
https://nlauk.wordpress.com/2017/02/02/how-landlords-can-help-in-the-refugee-crisis/

What do the others think? I would gladly help the refugees if:
1. there was a special deal for an affordable mortgage on the property, so I can lower the rent to a level LA would pay and still make a profit.
2. the government has revoked all these taxes imposed on LLs since Summer Budget 2015, as especially Section 24.
Otherwise no chances I can even think of helping - in fact - the Government. I am surprised that they have an audacity to ask...
This is only my private opinion - as much as I think these families need support, there will be a very scarce opportunity for them in the South East.
I would be very interested to hear your comments on that matter. Thanks.

I think this discussion needs a thread of its own?

If we had a vacancy (or one should arise) in any of our properties I'm sure we would be willing to help rehouse people coming in from Syria - the only criteria for us would be that the rent paid would need to cover the mortgage (and if the LA could bring any weight to bear with the government on reducing the implications of S24 what a bonus that would be)

An ex MPC member speaking out against s24 maybe worth contacting

http://www.thisismoney.co.uk/money/buytolet/article-4187714/Buy-let-tax-crackdown-branded-terrible-tax-change.html

Seems like this is money website is seeing sense and it is starting to be understand properly just how destructive this tax is what the hell are these fools playing at

http://www.thisismoney.co.uk/money/buytolet/article-4171368/Landlords-plead-buy-let-tax-relief-u-turn.html

I have just noted the following in the link above regarding what I had believed, until today, was to be a reduction in tax relief:

"It also won't be a relief. It is being replaced with a tax credit which must be claimed back meaning landlords will find 100 per cent of their rental income is taxable and they are then in line for a credit payment of 20 per cent back"

So if that IS the case how will it work (even for lower rate tax payers)? Will we all need to find a large amount of cash to pay a tax bill on our turn over before we can claim back a credit at some point down the line?

Reply to the comment left by "D D" at "03/02/2017 - 17:33":

I thought 20% credited back is 20% of the mortgage interest amount? Say - £1000 mortgage interest, back £200? I was sure deduction of other costs (repairs, adverts, funriture replacement (i/o wear & tear), agents fees etc was still allowed to be deducted?
Please inform me if I am wrong - Thanks!

Reply to the comment left by "D D" at "03/02/2017 - 17:33":

Hi D D

That paragraph of the article is wrong, we will not be taxed on our turnover. Instead of “rental income” it would have been better to write “finance costs”, but even that would not have been a strictly accurate description of what will happen.

In fact, finance costs will be ignored when HMRC calculate the rental profit, thereby inflating it. Then they will calculate the tax on your total income from all sources which will of course be inflated by the amount of the finance costs, so it will be like taxing 100% of them. But simultaneously HMRC will deduct 20% of them from the tax they thus arrive at (subject to certain conditions). You won’t need to pay tax and then claim part of it back.

I'm in a cantankerous mood today, so I'd just like to say that the Parliamentary Conservatives have abandoned the aspirational capitalism of Margaret Thatcher, their core vote, and the concepts of integrity and public service. They are the real snivelling parasites: a bunch of vacuous and unprincipled little turds, transforming the party into one of corporatism, elitism, greed, lies, backstabbing and corruption.

They are the heirs to the snobs and brain-dead cowards, that gave the boot to the greatest, most radical and empowering British Prime Minister ever, and who then went on to lead the Conservative Party to defeat by New Labour. They will repeat this process again, but it won't be the dying Labour party that benefits from their folly next time.

Reply to the comment left by "Whiteskifreak Surrey" at "03/02/2017 - 18:58":

Although it is being phased in ( 25%, 50%, 75%,100%) finance costs will not be a tax deductable expense as in any other business. So you will be liable for tax on your rent/turnover less still valid expenses such as repairs and letting costs, then after any other income/wages are added you will get a 20% of finance costs "allowence" to deduct from tax due. If you are still in the 20% tax bracket without deducting finance costs (ie any borrowings and feees for your property) you will not be affected, but landlords with a "day job" and moderate gearing will loose out. All Landlords should check how they will be affected.There are tools on this site which you can just plug you numbers into (sorry not sure how to link )

Is the penny dropping?

http://www.bbc.co.uk/news/business-38907864