Summer Budget 2015 – Landlords Reactions

James, in addition, you have removed your displayed picture. It’s not what you looked, mattered to others, but your attitude.

Mr brother in law lives in USA and he has told me that, he can offset, all of his residential mortgage interest as well as Car Leasing costs against his income tax.

So for instance, if his mortgage interest as well as leasing costs amounted to £100k and his income was £100k then his tax liability would be Zero.

If Osborne is so eager to create a level playing field, then perhaps he should allow residential mortgage payers (homeowners) offset their interest against income.

That’s if he is so ethical and eager but no by shafting landlords.

Just so everyone is clear..I am talking about my brother in law’s personal home mortgage as well as personal leasing costs, which he is able offset against his personal tax liability.

So perhaps, they should bring MIRAS back, so these first time buyers can stop moaning.

Although, Buy to Let and residential mortgages can not be compared…as buy to let investors get brunt of management, void periods and rest of headaches which come with running business.

Reply to the comment left by “Saeef Khan” at “16/08/2015 – 12:29“:

Indeed Saeef. Text included on http://saynotogeorge.co.uk/first-time-buyer/ is as follows:

We do not believe that the change in tax on mortgage interest relief will help first time buyers in any way, but will instead, in many cases, just make it harder for them to save a deposit because rents will be higher.

The Chancellor has said that he wanted to remove this relief to make it a level playing field for people buying their own home and both the Institute of Fiscal Studies and the think-tank Policy Exchange have said his views are wrong.

We would suggest that if that was really the Chancellor’s intention it would have been better to re-introduce mortgage interest relief for the owner/occupier first time buyer.

Reply to the comment left by “John McKay” at “16/08/2015 – 12:52“:

That’s great John. Do you think, it’s worth writing to Obama and Hillary Clinton to back our claims or do you think they will trash our correspondence?

Reply to the comment left by “Saeef Khan” at “16/08/2015 – 12:57“:

I doubt they’d even know we’d written to them Saeef. Some correspondence clerk would simply file it under bin.

Miras, was introduced to encourage people to buy their own property & be less dependent or the Councils to provide incentive to people and to take their responsibility.

I do not recall what was the limit when it was introduced. As I recall it was £30,000 and one could buy a serious property in London for that kind of amount.

Like many of the disasters created by Gorden Brown, this was one of them along with not increasing personal allowance, Capital gains tax allowances, VAT on utility airport taxes, insurance tax, raid on Pension, sale of Gold reserve etc.

Miras, was introduced as Council building was on the decline. We are in the same position of having a annual shortfall of 240k units.

Do not expect any Government to give anything to the Citizens. In fact what ever you have been able to build/accumulate cash in & move on .

I received an email from Property Secrets today, promoting flats in Manchester.

I replied as follows:

Hi

One big Property Secret seems to be the effect of the proposed change to the treatment of finance costs announced in the Budget on 7 July. Many people don’t understand it because it is described in language that only a tax accountant understands. We need to make them understand what is planned for them.

Bluntly, if the sum of your total income plus your BTL finance costs (including interest) is more than £43,000, you will pay more tax in 2020/21.

If you want to do your readers a service you should explain the effect this proposed change will have, and how they can help prevent it.

Then I sent them the links as per my post at 10.42 yesterday: https://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-280/#comments

If anyone else would like to reinforce this, their address is: [email protected]

Reply to the comment left by “Appalled Landlord” at “16/08/2015 – 13:34“:

Appalled Landlord, are you based in Manchester?

Reply to the comment left by “Mark Brown” at “16/08/2015 – 09:51“:

Hi Mark

At least your local Belvoir is alerting its clients that there is a problem, and they can Google it from there. I looked at my local Belvoir website, and their only news was dated January 2012, about squatting. The next nearest branch did not even have a News page. The next one after that had news about CGT for non-UK tax residents, but nothing about disallowing interest.

The agents I informed weeks ago have nothing on their websites, and I have only received an acknowledgement from one of them. They have advisers to attract new people into BTL, so maybe they don’t want to put them off.

So for you, congratulations are in order!