Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Ros .” at “05/08/2015 – 14:34“:

I can tell you one since I am an economist.

A significant number of standard tax rate people with some geared BTL will be shoved into the 40% band. This means that that non-BTL work that they might do at the margin will now be at 40% and they are hence likely to do, on average, less of it or not do it at all due to the marginal disincentive effect. This is negative for the economy.
I have already asked the Treasury to justify this for it is merely a result of the way they CHOOSE to do the taxable income calculations.

Reply to the comment left by “Mark Alexander” at “05/08/2015 – 14:37“:

I did not realise that the % of mortgaged rental property was so low.. (18%). Where others here aware of that figure?

NEW TAX CALCULATOR

Several of you have suggested it would be a good idea to produce a tax calculator to work out the difference between a company and an individual landlords liabilities.

Simon Whittaker at Mortgages for Business has done just that.

I’m not brilliant with numbers so if you are, please check his figures and report back. If consensus is that his calculations are right I will produce an appropriate article to alert all Property118 members.

Download the spreadsheet here >>> http://goo.gl/ZmyNRE
.

Reply to the comment left by “James Tallis” at “05/08/2015 – 15:33“:

Oppps. …bad signal. …on the plane….apologies for the multiple posy

Reply to the comment left by “G Cox” at “05/08/2015 – 15:11“:

That would be me – a humble teacher.

Reply to the comment left by “Ros .” at “05/08/2015 – 14:55“:

Get in line!

Reply to the comment left by “G Cox” at “05/08/2015 – 15:11“:

Thanks G Cox. We can hopefully use that. I’ll paste it into an ‘impacts file’. Can you have a think about other possible impacts. It is great to know we have an economist in our midst! Fantastic, actually.

Reply to the comment left by “Mark Alexander” at “05/08/2015 – 15:36“:

We are increasingly being asked to point people in the direction of online tax calculators specifically for BTL’ers, so it’s great to see this one ‘out there’.

As always though, I would add the caveat that online calculators (and mortgage search systems too, by the way) are a great way to start the planning journey, but personalised advice from a professional financial adviser is crucial to ensure criteria is met, flexibility of product and future aspirations are matched, and support in application submission, pipeline progression and efficient completions are secured.

As always, the team at H D Consultants are here to assist!

https://www.property118.com/member/?id=314

I have just extracted the following from an article on ‘Propertywire’ published October 2012:

‘Indeed, the chronic lack of social housing means the UK is highly dependent on the private rented sector to provide accommodation to those on housing benefits, for example, as there is simply not enough social housing to go around.

It is a view shared by the Communities and Local Government Committee, a group of MP’s that are urging the government to help the private rental sector by providing landlords with tax breaks and slashing red tape to make it easier for them to expand their portfolios.’

It would be good to know who the MPs were who were so positive about us and whether they’re still in Parliament!

Reply to the comment left by “Mark Alexander” at “05/08/2015 – 14:37“:

Sean Rath wrote:

“By restricting the finance cost relief available to the basic rate of income tax (20%) all finance costs incurred by individual landlords will be treated the same by the tax system.” “This change will rebalance the tax system as it ensures all buy-to-let landlords will receive the same relief for their finance costs.”

Translation: the tax will be raised for people who are now basic rate payers as well.

But George said it was to make us equal with owner occupiers. They must have realised that this did not make sense, and have changed their story.

“Landlords will continue to get full income tax relief on the other costs incurred in letting out a property, such as letting agent fees and replacing furniture, which constitute day-to-day running costs. It is also worth noting that finance costs are not deductible for other forms of investment such as trading shares.”

It is also worth noting that trading shares does not incur replacement furniture or all the other types of running costs that we have.

“The Government has also taken steps to support home ownership” At the expense of rental accommodation?

“and improve the supply of housing”. Good – the anti-landlord brigade can buy them because we won’t.