BTL is considered a business transaction but my tax isn’t?

by Readers Question

7 months ago

BTL is considered a business transaction but my tax isn’t?

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BTL is considered a business transaction but my tax isn’t?

I would like to pose a question to which I assume there is no correct answer.hypocrisy

How come Section 24 treats me as a private landlord and wishes to totally stop my tax arrangements and what would be considered as a normal business arrangement i.e. to offset my mortgage cost against profits but when I bought my BTL mortgage I was told that BTL mortgages are not regulated by the FCA as they are considered to be a business arrangement.

If my BTL Mortgage is a business arrangement, which is what I wanted when I bought it then why can I assume the business arrangement still exists and run my business accordingly?

Thank you for your time in reading this

Patrick

Comments

Neil Patterson

7 months ago

Hi Patrick,

Please see the following important pages and articles:

Today I launch my comprehensive report on Section 24 of the Finance (No. 2) Act 2015 >> https://www.property118.com/section-24-comprehensive-report/91755/

Treasury response to Section 24 report by Dr Rosalind Beck >> https://www.property118.com/treasury-response-to-section-24-report-by-dr-rosalind-beck/92358/

https://www.property118.com/budget-2015-landlords-reactions/76164/

https://www.property118.com/tax/

Tony Atkins

7 months ago

This just reflects the fact that the definition of "business" is not fixed, especially as regards property. Basically HMRC and the Government chooses what definition suits them best for the purposes of revenue raising and other political objectives such as encouraging property ownership. The FCA adopts a different approach for its domain of expertise. This isn't anything new: even before Section 24 and the differential rate of CGT (18% v. 28%) were introduced, private individuals owning more than one property were always treated differently from a limited company or partnership.

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