2015 Finance Bill Receives Royal Assent

by Mark Alexander

23:04 PM, 18th November 2015
About 3 years ago

2015 Finance Bill Receives Royal Assent

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2015 Finance Bill Receives Royal Assent

18th November 2015 may well be marked in history as the beginning of the end for most private buy-to-let landlords. 2015 Finance Bill Receives Royal Assent

Restrictions on the amount of financing costs which can be deducted by individuals, partnerships, trusts and personal representatives when calculating their income from a property business are included in the Act (s 24). The amount of mortgage interest or similar which can be deducted is restricted to 75% in 2017/18, then 50% in 2018/19, 25% in 2019/20 and to nil from 2020/21 onwards. Individuals will receive a basic rate tax reduction in respect of financing costs which cannot be deducted as a result of these measures. A committee stage amendment to s 24 ensures that companies chargeable to income tax are not subject to these restrictions (because companies generally are outside these provisions), and to enable trustees to claim the basic rate tax reduction in certain circumstances. A report stage amendment then clarifies that relief for interest on a loan to invest in a partnership is restricted where the partnership uses that investment for carrying on a UK or overseas property business that consists of residential property.

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Comments

Mark Alexander

23:12 PM, 18th November 2015
About 3 years ago

I forgot to mention, next week I will be meeting with the CML (Council of Mortgage Lenders) together with an NLA rep and Mark Smith (Barrister-At-Law) to consult on how the tax changes are likely to affect their members (mortgage lenders).
.

Guy Bradley

11:21 AM, 20th November 2015
About 3 years ago

Hello Mark,
I actually find it staggering that this major change has passed all discussions, representations and pleadings unchanged. I felt certain that this method of calculating income/gains which, in my view turns business accounting/planning upside-down would be another omni-shambles for the Chancellor and require a u-turn. I think the unintended consequences of this (both in housing and general business practices/planning) will be felt in many ways once this genie is out of the bottle......and where will it end?

Separately I have been a Conservative supporter for over 25 years and this has rocked my faith in them. I can't see that I can vote for them ever again.

Ian Narbeth

16:58 PM, 20th November 2015
About 3 years ago

Yes, Guy the spin about "restricting relief" to basic rate has worked and most of the MPs, even Tory ones, have fallen for it.

I now make it my mission to tell all who will listen that George Osborne is prepared to tax some landlords at the rate of infinity. I can say without fear of contradiction that he is the Chancellor who taxes at a higher rate than any other politician in history. Let it not be said any longer that the Conservatives are the party of business and low tax.

I have voted Conservative since 1979 but will not be voting for them again while this law is on the statute books. My MP is a friend and I will break the news to him shortly.

Martin S

10:58 AM, 21st November 2015
About 3 years ago

Please, spare me the "I voted Tory, and look what they are doing to me". The truth is that they don't care. The galling part is that only 24% of the British Electorate voted for this party in the last election.

If you are wealthy, and have plenty of working capital, then no problem exists, but for small to middle size 'upstarts' who need to borrow money to stay in the property game, then please don't get ideas above your station!

Carol Thomas

11:09 AM, 21st November 2015
About 3 years ago

Reply to the comment left by "Martin S" at "21/11/2015 - 10:58":

As a fellow 'upstart' I always believed that the Cons (good name that !) were very pro small businesses. How wrong could I be! I was born and raised a Tory (military family) and I have never seen this kind of behaviour from them! In fact I believe they have conned themselves into believing that this was a good move and I can't wait to see the egg on their faces when all the implications become reality. I only have five rental properties and was planning to live in one, sell two and keep two for my pension. No hope for that anymore, I'll be lucky if I can keep one!

Gareth Wilson

16:45 PM, 21st November 2015
About 3 years ago

Reply to the comment left by "Ian Narbeth" at "20/11/2015 - 16:58":

Hi Ian,

What did your friend say? I am really keen to know. I hope you explained that these are not just your sentiments but those of many landlords you've spoken to that voted Conservative in the last election.

I voted Tory and have done so since I was first able to vote. Where once I foolishly considered them my representatives, governing as best they could for the country's benefit and sometimes unfairly maligned, now I look upon them as predators and potential enemies: invidious, thieving little cretins that I must combat to stop what I own being pillaged and destroyed.

So quite a change! 😀

If I were to vote for them in future, Clause 24 would need to be completely reversed and I would need to never see George Osborne's face ever again. So I think I'm done with them (as they appear to be already done with everyone here).

Guy Bradley

17:02 PM, 21st November 2015
About 3 years ago

Reply to the comment left by "Martin S" at "21/11/2015 - 10:58":

Great comment and unfortunately it clearly demonstrates a lack of basic business understanding. So, to follow this line of thought through then people/companies that borrow money deserve whatever they get if retrospective taxes get introduced whereas the 'big boys' should be exempt and deserve to retain their position?

How did the big boys grow? Aspiration and growth should be discouraged/penalised? People should 'know their place'?

Aaaaaah, fab to have a flashback to the dark ages there, 'Life On Mars' is alive and well.


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