This Is George

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This is George https://t.co/C2wHeMdpgC #landlords #tenants #ukhousing pic.twitter.com/X2cg40SXjx

— Mark Alexander (@iAmALandlord) January 29, 2016

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George thinks landlords are the cause of the housing crisis. However, over the last 20 years or more, BTL landlords have financed new-builds, refurbished dilapidated stock and converted over-large properties into space-efficient shared houses. Landlords have increased the stock of dwellings. If landlords had not done so, the crisis would now be even worse.

George's buy to let tax grab will be passed onto the consumers just like any other new cost, through an increase in rent. This increase won’t make landlords any better off – they will just collect the levy to pass on to the government.

George has a bad memory. He has forgotten that when this measure was introduced in Ireland in 1998, rents went up by almost half (from 600 euros to almost 900) over the following 3 years, at which point it was repealed. They’ve just tried it again in a small way by disallowing 25%. It has made the homeless situation so bad that the Irish government are going to exempt landlords who will take benefit recipients again.

George doesn't care about the tenants who won't be able to afford the rent increases and who will be evicted. This is mostly likely to apply to those who are on housing benefit, which is capped. Other tenants will have to leave when landlords sell their homes. The number of homeless people will rise, as will the cost of housing them in temporary accommodation, wherever it can be found for them. In addition to the extra financial cost there will be incalculable human cost. However, the impact statement that the Treasury issued last July in support of this change in tax rules does not even mention tenants, let alone assess what the effect will be on them.

George has hidden his reasons for his Alice in Wonderland Tax. He talks about levelling the playing field. However, none of his reasons stand up to scrutiny. There are two real reasons. The first is to collect more tax - but this will come from tenants, via landlords. The second is that George Osborne wants institutions to build blocks of flats and keep them to rent out. Forcing rents up generally, and forcing some landlords out of business, will both make the sector more attractive to these institutions.

George will bankrupt some landlords. Ours will be the only business in the country that will not be able to deduct interest from revenue/income to arrive at the taxable profit. We will pay tax on the interest we gave to the lender as if it was somehow still in our bank accounts as well. It will amount to a levy on interest. Some landlords will have to pay more in tax than their real profit. The difference will have to be made up from other taxed income, or savings. Those without either will be made bankrupt by HMRC. The levy will be demanded even when a pre-tax loss has been made.

It is quite apparent that George and his highly experienced team have not thought this through, however I think there ego is too big to accept they have done wrong here. They are looking to be a laughing stock amongst Europe and further afield. UK the country that taxes on turnover over profit. It really is embarrassing to see this tax has even been made public. I am sure once he gets a tap on his shoulder from one of his polo buddies he may just smell the coffee. He lives in a different world to that of a person who has to BORROW money to try and better there lives for themselves and there children. He lives in a world where his friends biggest issues are whether to bank in Monaco or the Cayman Islands, or indeed both

Reply to the comment left by "rav singh" at "29/01/2016 - 10:07":

I disagree Rav. It is quite clear that George and his team *have* thought this through very carefully.

And they are doing a super PR/spin job to sucker people and media into thinking that it is anything other than a transfer of wealth from the middle classes to the corporate leaders.

This is George.

George says he's "levelling the playing field".

George thinks that interest paid to the bank by private landlords should no longer be a tax deductible cost of business.

George thinks that interest paid to the bank by corporate landlords should continue to be a tax deductible cost of business.

George thinks that anyone buying an investment property should pay an extra 3% stamp duty.

George thinks that you should not have to pay the extra stamp duty if you can afford to buy 15 or more investment properties at once.

George wants everyone to believe this is "levelling the playing field".

George is making his close friends very happy.

Don't be like George.