Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “G Cox” at “07/08/2015 – 19:46“:

Non-residents pay the same tax rates as anyone residing in the UK.

Non-residents not paying CGT on properties sold no longer applies.

In fact, Hundreds of thousands of non-residents could lose their tax-free allowance on UK earnings, under Treasury proposals.

Reply to the comment left by “Cyril Benn” at “09/08/2015 – 04:10“:

Re point 2, this could be incorrect ! i took it that the 5 year rule only applies pre April 2015 but perhaps the rule still stands.

There’s been a bit of talk about some landlords having foreign property to which they could go and live after the inevitable meltdown for many if this ridiculous decision goes ahead. An accountant once told me that if you have property in France, for example, and you go bankrupt in the UK, that HMRC can’t touch the French property. Anyone know if this is true?

Reply to the comment left by “Ros .” at “09/08/2015 – 09:25“:

I don’t know about France, but I have research the homestead rules in Florida and that’s the case there.
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The Treasury/OBR have made certain forecasts about the amounts of money that either the Treasury will save as a result of the proposed tax change, and has made forecasted about the 100%+ growth in CGT from property in the next few years.

I have no idea about how to go about a Freedom of Information request but does anyone think answers to the following questions will be beneficial to our cause:

1. where does the 100%+ increase in CGT receipts come from?
2. how many individual Landlords does it expect to convert to Ltd Co’s and how much CGT/SDLT does it expect to net from this?
3. how many individual Landlords does it expect will be made bankrupt as a result of the proposals?

Can you think of any other questions (or changes to these questions)?

Only another 165 signatures to hit the 10,000 mark

If you haven’t signed yet then please do here:
https://petition.parliament.uk/petitions/104880

Funnily enough I asked my accountant a similar question 2 days back. He told me that if one is a uk tax payer thar creditors can apply to courts to seize international assets. And that it’s much easier within EC. He told me that international trusts such as a Cyprus trust could offer immediate protection….but as with all things tax related…There would be tax implications for uk tax payers….I have no idea though how complicated 5hat is to set up.

I still want to know why LTD companies are exempt from this iniquitous finance tax, I’ve done lots of number crunching recently trying to evaluate the situation, how do we find out the answer to this? I’m seeing my accountant but I don’t expect he will give me much insight. I can see that they pay corporation tax at 20% and so in theory that they only get 20 tax relief on interest payments and so in theory sole traders who are 40% tax tax payers have an advantage, but they in turn have a host of advantages. As I have mentioned they can use all of that profit locked in the company that has not yet had FULL tax paid on it to roll in to reinvest on a new purchase of property. They effectively get to use the tax mans money to invest.
I don’t know if I am going bonkers with my evaluations and I have never run a company. My accountant has always told me that there is not much difference in the after value cash in your hand from either sole trader or LTD company, do we have an advantage that I am just not seeing?
If my outlook on this is correct then in order to put us on an even keel with the LTD company after 2020 we should be able to use our 20% tax levy to reinvest in new property and not have to pay the tax for doing so. And if that were the case then why can’t our tax levy also be used to pay back the capital that we have introduced into our business. I’m probably talking rubbish now but there is a point to be made somewhere.
Anyone know anything about Limited Liability Partnerships, can we switch our business to this structure without stamp duty and loan redemption etc can we then use this to avoid the tax?
Crazy thoughts just ignore me if it’s rubbish.

Just read this

The Summer Budget of 2015 is likely to be remembered for some time as a watershed in the fortunes of both landlords and tenants

What I personally feel is that it totally undermines the government , how can anyone now believe anything they say?

Whats next just around the corner that they will bring out to grab all the monies they can?

Businesses need to know that if they are working and building it up that they are not going to be subject to the the government rubbing their hands with glee and taking all the profit.

They intend to hit us hard .

Farmers are suffering badly too that they are selling milk under the cost to produce. This morning I heard that we are importing 50% of farmers product from aboard.

While the £ is strong it probably cheaper to import the milk and while it is stuck in Calais. We can have a cheese mountain by the time it gets to our homes,