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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8:40 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 06:49":

Hi Melvin

It depends what you mean by income.

If the 45k is rents received, deducting costs of 5k leaves rental profit of 40k so you won’t pay anything at 40% unless you have other income of 3k or more.

If the 45k is rental profit after deducting 15k interest then you pay tax on 60k. 17k of that would be at 40%. If you had any other income the tax on that would be at 40% as well, unless it was so high that it took you into the 45% band.

Appalled Landlord

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8:48 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "21/07/2015 - 08:40":

PS In the .second case you would get “relief” of 20% of 15k

Fred Bloggs

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8:49 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "21/07/2015 - 08:40":

That clarify's for me, thanks very much.

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9:06 AM, 21st July 2015, About 10 years ago

I'm wondering if other groups other than Landlords might also be effected by this and may also have comments for George Osbourne that would add weight to our campaign. I'm thinking about banks who may not be selling as many mortgages and builders not building as many houses. And therefore not as much social housing under the 2/3 rule. I guess GO's hope is that less BTL mortgages will be contra by more FTB mortgages. But can this happen without FTBs miraculously overcoming the current stumbling block of the deposit? Does anyone know what the mortgage banks are thinking about this?

And also is it just interest charges we are concerned about or is it all charges related to obtaining finance? I recently took out an MBNA credit card loan for £10k. The thing is that the interest rate for the whole period of the loan is zero! They did of course charge me an Admin fee which works out at about 2% pa. I know the bank is just playing with words here but if I had used this loan for financing my BTLs would I be effected?

Kathy Evans

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9:19 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "20/07/2015 - 21:51":

All landlords with mortgages will be affected, including standard rate tax payers, as the y will be paying tax on their turnover, not profit. My modest rents made me about 17000 (less other costs), but now I'll be paying tax on about 27000 (less other costs).

Ewan Murray

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9:38 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Roanch 21" at "21/07/2015 - 09:06":

It's finance costs including mortgage and arrangement fee's etc.which given the levels we pay is also a big issue.

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9:49 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Melvin Edwards" at "21/07/2015 - 08:49":

Exact numbers would be 7403 tax under old, versus 10403 tax under new....worse off by 3,000.

Mark Alexander - Founder of Property118

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10:09 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Roanch 21" at "21/07/2015 - 09:06":

Paragon only lends to landlords and their share values have fallen sharply.
.

Fred Bloggs

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10:18 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "Kathy Evans" at "21/07/2015 - 09:19":

I think you will find that if your current rental income is less than 43,000 pounds then your tax will stay the same apart from W&T of course.

Fred Bloggs

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10:21 AM, 21st July 2015, About 10 years ago

Reply to the comment left by "James Tallis" at "21/07/2015 - 09:49":

On what scenario are you working 45t rent received or 45t rent profit ?

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