Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “shakeel ahmad” at “31/07/2015 – 08:51“:

Don’t forget….32k tax free was also a bit misleading.. as dived ends are paid AFTER the company has already paid its corporation tax of 20% on profits. Comparisons are not so clear cut…..whether or not private landlords are better off over limited company formats depend on level of debt and how much is taken out of the business to live on.

In my mind there the only winners with any tax change…..are the accountants!…..Other than those that have graciously given there time for free on here.

Mark A
Can we please get some clarity on what a 20% tax [ayer is and if they are affected.

If I don’t have a job and my only income is from BTL & If my current situation is that I am in the 20% bracket does the budget effect me?

I can see both arguments stated in the press on here and elsewhere….

1. No – as a 20% payer you are not affected at all

2. The change will make you a hight rate tax payer because of the way it is calculated.

What do we now know for certain and where is the info on the .Gov or .mhrc.co.uk websites? There was a link alluded to on page 9 but that link doesn’t work…

Reply to the comment left by “John McKay” at “31/07/2015 – 08:49“:

To find my local BoE rep I just typed into Google “Bank of England East Anglia”

Try the same for your region.
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Reply to the comment left by “Mark Alexander” at “31/07/2015 – 09:10“:

OK, it’ll be the same guy then 😉

Download this spreadsheet to calculate the impact of this policy on your personal finances. This will answer your question.

Dear Mark, Following your request for members to contact their local Landlord Associations I have just emailed Gateshead Landlords Association in the following terms (Kim is the manager of the site I think. It’s run by the local authority)

Dear Kim,

I’m sure you’re familiar with Property118. Your site has a link to their campaign against unilateral interest rate rises by the Bank of Ireland and Birmingham Midshires.

They are now raising awareness about some potential changes to the way Landlords are taxed. Many of your Landlords will be aware of these proposed changes but this site has produced some very educational worked mathematical examples of how landlords will actually be impacted.

Property118 has asked concerned member landlords to contact local Landlord representative bodies and pass links on to this information so that your members can inform and educate themselves about the practical implications of the proposed changes.

The thread is at

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

Could you post this on your site please? I’m sure your members would find it educational,

Thank you,

Stewart Jackson
Landlord
Newcastle

Reply to the comment left by “Mark Brown” at “31/07/2015 – 09:07“:

Mark…..If the rent received less allowable costs (of which interest and finance related costs are no longer allowed) push your income over the 20% income threshold.. ..you will probably end up paying more tax. The amount depends on how large you interest bill is

As a parallel thread to the budget furore, may I direct your readers to the rlevant Moenyweek Money Morning article which can be found here: https://mail.google.com/mail/u/0/?tab=Tm#inbox/14ede55e8392a8f9. The attachments thereto are worth the read.

In any crisis, it behoves us all to look at the downside risk and formulaye our stategies accordingly.

It may not be long before the Tories give up any belief in private property. A drowning government of any colour will take us all down – so swim clear of the suction while you have the chance. The question is, what will still float?

Q&A Document in PDF format

Download here >>> https://www.property118.com/wp-content/uploads/2015/07/All-you-need-to-know.pdf
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BTL Scotland ……what a formidable opponent you are, your enthusiasm and dedication is very infectious! I’m grateful to have you on our side!!!