Summer Budget 2015 – Landlords Reactions

I think you may be right, that does not prevent them from campaigning though and several ex-pats may also retain a UK address.
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Reply to the comment left by “Ros .” at “03/08/2015 – 13:42“:

Similarly Ros, I know someone that is a Landlord and also owns a cafe. Letting agents manage his properties and he has a manager to manage the other business whilst he spends most of his time in another country. How can one be a business and the other an investment?

Reply to the comment left by “Mark Alexander” at “03/08/2015 – 16:08“:

Hi Mark

If it’s British citizens, then it doesn’t matter which country they live in.

Reply to the comment left by “Appalled Landlord” at “03/08/2015 – 16:33“:

Are you sure?

The petition entry form asks for a UK Postcode.

Nothing to stop them using the postcode of a family member though I suppose 😉
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Apologies, I have been caught up with problems relating to my BUSINESS and have not done very much campaigning. I will be taking up arms once again this evening and tomorrow and the next day…

The article at the top of this page has changed – please take a look and please TAKE ACTION.
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Reply to the comment left by “Mark Alexander” at “03/08/2015 – 16:36“:

Hi Mark

It asks for a post code, but doesn’t specify UK.

The heading is “Only British citizens or UK residents have the right to sign”

It asks for your location, with a drop-down box listing all countries.

Looks like you’ve found a new source of signatories!

Reply to the comment left by “Connie Cheuk” at “03/08/2015 – 15:28“:

Hi Connie,

I agree with you but…

The old taxation (on profit) is being replaced by a Tax on INCOME.
George doesn’t care what other bills you have to pay after he’s taken his slice.
His thinking is: if a residential mortgagee has to pay from taxed income, why shouldn’t a BTL mortgagee.

In George’s world, the income you receive from the BTL portfolio is just that: Income waiting to be taxed.

We have to change our arguments to counter the unfairness – but we mustn’t give them the easy option of ‘correcting our interpretation’ of the change…
They are NOT taxing the interest; they are (merely) removing the unfairness whereby BTL mortgages attract tax relief, and residential mortgages don’t.

Unless we are clear on the actual change and present our arguments precisely, I fear that we’ll lose any hope of getting a change – and all the hard work will achieve nothing.

Kind Regards
SW

Reply to the comment left by “Shining Wit” at “03/08/2015 – 14:47“:

Hi Shining

The proposed change is not a tax on interest at a set rate. But it amounts to a levy on our finance costs, at anything up to 25%, to be collected by the taxman. It will have the same effect on my bank balance as a tax.

This proposal to disallow finance costs in calculating our rental profits is an economic nonsense.

It is nonsense to claim that repairs and agents’ fees etc. are fully deductible, as incurred wholly, necessarily and exclusively for the business, but that finance costs are not.

It is nonsense to claim that finance costs are fully deductible if the property is held through a company, but not if it is held in an individual’s name.

It is nonsense to suggest that that part of rent receipts which is paid over to the lender as interest is still retained by us as income. That .really is fictitious income, or even fantasy income.

All other businesses are taxed on their profits, not on the amount of money they receive.

Interest is our biggest cost. It is a legitimate deductible expense of any business, whether a company or not. It is nonsense to suggest that we should pay it out of taxed income.

It is nonsense to claim that BTL mortgagees have an unfair advantage over residential mortgagees. Those who do so have fallen for a politician’s spin. Our interest is an essential cost of buying our properties which we use to generate taxable profits. Residential mortgagees pay interest to buy properties to live in, which do not generate taxable profits. We pay CGT when we sell our properties, residential mortgagees do not.

Reply to the comment left by “Appalled Landlord” at “03/08/2015 – 17:07“:

It is nonsense to claim that repairs and agents’ fees etc. are fully deductible, as incurred wholly, necessarily and exclusively for the business, but that finance costs are not.
BE CAREFUL WHAT YOU WISH FOR

It is nonsense to claim that finance costs are fully deductible if the property is held through a company, but not if it is held in an individual’s name.
ACTUALLY, YOU COULD CLEAR THE MORTGAGE, AND BE ON A LEVEL PLAYING FIELD WITH RESIDENTIAL MORTGAGEES.

It is nonsense to suggest that that part of rent receipts which is paid over to the lender as interest is still retained by us as income. That .really is fictitious income, or even fantasy income.
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I’m sorry, but it IS income.
Just the same as my (after-tax) salary has to cover my residential mortgage, so my (soon-to-be-after-tax) rental INCOME has to cover my BTL mortgages.
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PS The views above are not necessarily those of the author – but we have to counter them.

SW