Summer Budget 2015 – Landlords Reactions

An interesting point of view from the Property Wire today:
http://www.propertywire.com/news/uk/tax-change-biggest-issue-uk-buy-let-landlords/

What do the other think?

I read this submission and seethed. To suggest that letting property is a business when it is treated as investment income is difficult to comprehend, we all know it is a business but government will not listen.
How do you deal with section 24 tax if it will result in more than 100% tax on profit? Tax on profit is a legitimate business expense, tax on turnover is nonsense.

What a patronising and ill informed debate/article. Incredible that a so called tax adviser (although not professionally qualified I note) could basically tell us to 'suck it up'. Completely flying in the face of ICAEW commentary on the matter and ignoring the fact that the policy is fundamentally out of sync with Generally Accepted Accountancy Practices - let alone the centuries old common sense of taxing profit not turnover. Perhaps some of the panel are aspiring MPs' who don't let ignorance of the subject and professional advice get in the way of policy ? Appeasement of such an unjust attack by indivduals who should know better is not at all helpful. Shame on them.

I'm still angry about that article - how would those so called professionals like to have a already respectable annual tax bill of £30,000-40,000 on hard earned money more than doubled on the same profit as a result of such a badly thought out taxation policy ? 'Just get on with it and adapt' they would say. Well yes of course we must as business people and we have by doing things like raising rents by 11% last year and now every year. There is some merit in the market dictating the rent argument but this is distorted by the fact that many of us, indeed probably most of us, were too busy to bother with annual rent increases hence so many rents are/were below market level - I used to look at it as a 'thank you' to the tenants and sharing some of the love with low interest rates. No more. The writer on the market rent argument fails to then go on to identify ever increasing demand and now diminishing supply. We have sold. Other landlords have sold. More will follow. The below market rents will be increased to the market rents and then the latter will have further upward pressure from demand and supply pressures - it is as clear as day. Look at Ireland. Agghhhh. So angry.

Reply to the comment left by "Cautious Landlord" at "20/03/2017 - 11:57":

That attitude is unbelievable - thanks for sharing your opinions too, as I did not believe what I was reading.
NB - I shared that link on the Axe the Tenants Tax FB page.

Reply to the comment left by "David Price" at "20/03/2017 - 10:58":

What are you complaining about David? The article has all the answers. Taxed more than 100% of your profit? Just "adapt", "take it in your stride"!. Government imposes rent controls? Treat it like a business and adapt! You saved for years to put down a deposit on a house, then saved for decades more to pay off the mortgage? Well, when a Labour government gets in and forces you to sell to your tenants at a 40% discount under their proposed extension of Right to Buy - just roll over and take it in your stride. Surely you can't have a problem with that? Isn't that what happens in every business? What did you say? Magna Carta? never heard of it!

I think I'm right in saying that Tony Gimple advises landlords on the setting up of trusts to mitigate the effects of Section 24?

I'm sure I heard him speak on that subject in a webinar recently so why he's advising us here to 'suck it up' I'm not sure?

That seems to fly in the face of his 'day job'.

Reply to the comment left by "Old Mrs Landlord" at "20/03/2017 - 12:18":

I already see students (groups of 4) queuing up to buy...

Reply to the comment left by "Whiteskifreak Surrey" at "20/03/2017 - 14:04":

They may well be pipped at the post by my unemployed HB claimants.

Nice of the London experts to tell me not to worry about section 24 and to take it in my stride.

Think I might refund all the rent increases, invite my DSS tenants back and start building again.

Or maybe not.