Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 9 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

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Comments

Angela Bryant

8:27 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "Ruhal Uddin" at "29/07/2015 - 22:55":

Hi Ruhal,

Well done for starting the Petition. I don't know you or why you might want it removed and appreciate from Mark's comments it may be more personal than you care to share. It's very brave of you to have put it up.

I am worried as someone that shared the Petition widely yesterday and having seen the numbers signed up rise quite dramatically, that there could be a problem if it's taken down and replaced, that some people (on the edges let's say) might not be bothered to sign a replacement but might feel it's pointless and amateurish to put one up then take it down for another. I do hope not of course and will give my support either way - I just hope others will too. I hope the government don't see this also as an opportunity to try and muck up the momentum!

Angela

Moffard John

9:02 AM, 30th July 2015, About 9 years ago

Angela,

This is exact concern I have and I totally agree with your entire assertion. Although wording of 118 community may attract more audiences but there is no cast iron guarantee this will happen.

In a nutshell the principal is same whether it comes from 118 or from Ruhal so in my opinion it should be left alone and should be added on from 118 members as taking it down may result in negative repercussions and replaced petition may not recoup lost signatories.

Appalled Landlord

9:03 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "30/07/2015 - 07:23":

Hi BTL I S

The figures in all the examples are correct now. Well done.

Appalled Landlord

9:26 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "30/07/2015 - 08:25":

Hi BTL I S

Megan Shaw’s example was posted on page 48 by syed shah:
http://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-48/#comment-58439

It shows that someone with a real rental profit of £1,200 will pay £1,800 in extra tax, on top of the £240 that he would pay today, making a total of £2,040. This is 170% of the profit.

So, after looking after the property and his tenants for the year he hands all his rental profit over to the state. In addition he hands over a 70% penalty which has to come out of his salary after PAYE and NI have been deducted.

He would literally be better off without the rental property.

Connie Cheuk

9:51 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "Appalled Landlord" at "30/07/2015 - 09:26":

Well done, Appalled Landlord, I was looking and looking for this in the archived pages.

Mark Shine

10:33 AM, 30th July 2015, About 9 years ago

BTL IS & A L – fantastic effort as always, and apologies if I’ve missed something but in Example 3 when you say rental profit, do you mean gross rental income less future allowed costs (ie not finance costs)? Are you saying rental income is 25k, and the interest element of her BTL mortgage payments are 35k? That would not meet the lenders affordability criteria.

Stewart

10:37 AM, 30th July 2015, About 9 years ago

I have just looked at Osborne's Wikipedia profile,

https://en.wikipedia.org/wiki/George_Osborne#Member_of_Parliament

He's the MP for Tatton. I wonder if he ever does surgeries? Maybe we could get a delegation together and ten or twenty of us go and see him. I'm in Newcastle but would be happy to travel down. Maybe we could see him at the Houses of Parliament?

Dr Monty Drawbridge

10:44 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "Ros ." at "30/07/2015 - 08:10":

Ros - a friendly acquaintance of mine is a sub editor at the Daily Mail. He really does not understand this. They are convinced anything anti landlord is a good thing - their line is that landlords have been subsidised by government and ripping people off for years. He's just gone on holiday but I am hoping to arrange a drink with him when he gets back.

Ironically, whilst he thinks BTL is so unfair, he is getting tax relief on his pension contributions, which are being invested in corporates buying up BTL portfolios - and are not affected by the new rules!

Connie Cheuk

10:55 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "Mark Shine" at "30/07/2015 - 10:33":

That was what I asked a while back. I think it is profit, but the actual rental income is not shown before calculations. Not that great with figures, but knew something was missing.

Appalled Landlord

11:31 AM, 30th July 2015, About 9 years ago

Reply to the comment left by "Mark Shine" at "30/07/2015 - 10:33":

Hi Mark

Her rental profit is £25,000 and she pays £35,000 in mortgage interest on her rental properties. That means she receives rent of £60,000 plus the other costs which are not mentioned, so interest is covered at least 1.7 times.

It might be better to rephrase this example to make it like the others:

She receives rent of £75,000 per annum; her mortgage costs are £35,000; and her repairs and other tax deductible costs are £15,000.

To prevent misunderstanding in the other two examples it would be better to use the wording “He/they receive rent of £x,000 per annum, instead of saying “His/their rental income is…

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