Summer Budget 2015 – Landlords Reactions

Hi Mark.
I’m new to Twitter. How do I find your Tweets page?

I just tweeted this, using BTL’s slogan:

@sarahbeeny Support Your Fellow Landlord – Sign the Petition Against the Landlord Tax Changes https://petition.parliament.uk/petitions/104880

(I think she’s a landlord…)

Reply to the comment left by “Mark Alexander” at “03/08/2015 – 21:48“:

” LETTING AGENT TODAY have today published a column about the petition

Reply to the comment left by “Ros .” at “03/08/2015 – 21:51“:

Campaign Tweets >>> https://www.property118.com/tax-levy-campaign-tweets/

Many of these are BTL’s slogans
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Reply to the comment left by “ray selley” at “03/08/2015 – 21:55“:

“LETTING AGENT TODAY have today published a column about the petition”

Please post a link 😀
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Reply to the comment left by “Ros .” at “03/08/2015 – 21:33“:

Yes, I know. I am able to set up a limited company without incurring the CGT other landlords will incur, and can just play by corporate rules. However, this whole affair is maddening and so unfair to so so many, and some of the comments on here are not helping matters.

The whole point is that the government should be promoting businesses, start-up businesses, small business, big business, and THIS IS a business, in order to promote economic growth. This means citizens are allowed to improve their finances. That’s the business principle.

I will not be doing anything differently operating under a Ltd name, except restructuring accounts and paying dividends to myself, but all that malarkey aside, the nature of my business will not have changed. I am still hopefully buying and letting properties. In fact, there will be a few more obstacles in my way with fewer lenders lending to Ltd companies, or, as I suspect, there will be more lenders suddenly willing to lend to Ltd companies to capitalise on tax. What will change and make things harder is when I sell my properties, so do I hang onto them until I die? Absurd!

Is this what things have come to? A rock and a hard place? Keep campaigning, people. This is why we have a Democracy and why rules regarding tax and other areas affecting our lives are not set in stone for us to unquestioning follow. Instead, they need to be challenged, especially when they don’t make logical sense and are simply to fill the empty government coffers. Remember that MPs are there to serve us, NOT the other way round.

Great efforts on the petition.

I have watched from afar but decided to add a few of points of challenge to help engage thinking and strengthen argument.

Firstly some of this is very dismissive of opposing views. Listen to other views either to gain a compromise if appropriate or by eventually winning the argument.

Secondly, the debate over business or investment is useful, but the government can tax different parts of the economy or different models how it feels fit. Housing is political so I would expect it to change on political sentiment.
Also regardless of the work involved e.g. a day trader can work 10 hours, but is an investor.
Rentals are taxed differently to a sole trader eg Schedule D taxation NI, VAT etc.

So if we agree it a business (and I believe it is) – it does not mean such a political commodity of housing provision has to be taxed it the same as every other business. That decision is not within our gift and it is not a right to insist upon it. The petition will help to influence.

Thirdly, the tone about increasing rents will not win many friends or support. Some of the language ‘I get hit, I hit back…its a business’. Be wary of that tone….there are bigger sharks circling leveraged landlord and they are not the tenants. They are LLs like me who protect the resource on which we so heavily depend.

Many like me have deep pockets of cash. I buy cheap using a repayment mortgage – renovate well adding further to the equity with my own funds on said improvements. Who in other businesses uses interest only?.

I have been doing this for 15 years, I will not increase rent. This was my risk not the tenants. I have families to look after – that was my choice and now its my responsibility. I may need to sell when a property is empty – but I will do so rather than turn the screw on families who are not even close to being as financial secure as me.

Finally – the victimisation of LLs. It was fine for a few days after the announcement
but now lets win the argument rather than suggest the government is picking on LLs. Of course they are, it is politics.

I doubt many will like a challenge….but to see this journey through you need to accept many others will have one. Even the LLs.

So maybe keep one thread for the petition updates….and another for genuine debate.

Typical argument from guardian reader riddled with envy and jealousy….. But we don’t get any tax relief on our home mortgages,

My response ….. If you are talking about income tax than the simple reason why you don’t get any income tax relief on your home is because it doesn’t produce any income. Income tax is … how can I put this any simpler …A TAX ON INCOME. Income for BTLs and all other businesses is (or was) obviously meant to be net income ie turnover minus wholly and exclusively incurred costs.

Now if your home helped produce income then of course you should get help the same way BTLs do. AND you do. See here ….
https://www.gov.uk/expenses-if-youre-self-employed Mortgage interest on your home run business is specifically mentioned here as an allowable expense by Hmrc. But obviously being called income tax you are only gonna get it if your home helps produce income

If you are talking about capital gains tax, then you get 100% relief which we don’t.. Interestingly this tax benefit on your home means that yor home is probably making you more money than your job. You are unfairly making loads of unearned and untaxed money out of investing in your own home. Which one of us did you call a parasite again?

Reply to the comment left by “Barry Fitzpatrick” at “03/08/2015 – 18:46“:

No, No, No!

It is not a tax on the interest (even if it feels like it).

It is saying that finance costs are not deductable expenses when calculating Taxable Profit (just like curtains, carpets, stand-alone white goods, etc have not ben for a couple of years).

It is then saying “Oh, but of course it is a valid business expense, so we will give you back the extra tax that a basic rate taxpayer would not have paid if we had not changed the definiton of Taxable Profit “.

Reply to the comment left by “Roanch 21” at “03/08/2015 – 22:40“:

The government is allowing homeowners to earn up to 7k from letting out a room without paying any tax. A golden handshake for helping those on low income or minimum wage (which my lodger is) and those who have to migrate for work (which the other lodger is).

I don’t see how this is different to providing decent accommodation outside my home. Give me the golden handshake for my rental properties that took initiative and years of saving, too, not the big stick!

Reply to the comment left by “Roanch 21” at “03/08/2015 – 22:40“:

Superb post! 😀

I am collating all the typical challenges that are thrown back at landlords and putting together a document with them full of landlords best rebuttals.

I will publish this as an article in due course.
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