Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Barry Fitzpatrick” at “04/09/2015 – 20:54“:

Good questions Barry. Presumably The Treasury already knew the answers before they came up with Clause 24, so hoping they will have no probs with sharing that info with all.

A genuine question, though slight deviation from the campaign. Where will the Syrian refugees (possibly 4,000?) live in the UK? Will they be housed in the Public Sector?

Reply to the comment left by “Charmaine ******” at “04/09/2015 – 14:11“:

This is exactly why I don’t like all this comparisons with limited companies. If people keep pushing this line soon this door will be closed. From a technical point of view there is a degree of logic to what some of the government has proposed…..but not all. The bit that makes sense is the use of the word relief. Don’t forget….investing under your own name…..interest has NEVER been allowed as an expense…..It only appears to have been because of the relief that hmrc allowed to apply back on investors annual returns. Setting aside semantics of whether or not an individual is a business…..The tax has ALWAYS been on the basis that the interest was not allowed as an expense….but given back as relief. Therefore the point raised by the residential letting association that relief should be capped at 25% makes sense….but that only the rent above that 25% relief should be treated as income. But please please…Please stop comparing the tax position with that of limited companies. The 2 setups have always been treated differently and let’s keep it that way.

@ Connie,
I am usually flippant in my remarks. In this instance I will refrain due to the devastation affect on humanity.

The landlords who has set up as limited company !!!!
.

Reply to the comment left by “James Tallis” at “04/09/2015 – 21:37“:

@James

Following your logic no Sole Trader should be able to claim interest relief for whatever purpose that a loan is taken e.g. a plumber takes a loan to purchase a van for his business cannot claim the interest payment as a business expense then.

Reply to the comment left by “Barry Fitzpatrick” at “04/09/2015 – 20:54“:

Barry,

I have no comments on question 4. I suggest questions 1-3 are amended as follows. I also suggest that 4 people each submit 1 question to avoid HMRC aggregating the enquiry and refusing to respond because it is too costly to do so.

(1) When HMRC produced its impact report on the proposal to restrict finance cost relief for individual landlords, how many private landlords did HMRC assume are currently in the UK and how many properties did HMRC assume are currently owned by these landlords?

(2) When HMRC produced its impact report on the proposal to restrict finance cost relief for individual landlords, how many individual landlords in the UK did HMRC assume are currently higher rate tax payers and how many properties did HMRC assume are currently owned by these landlords?

(3) When HMRC produced its impact report on the proposal to restrict finance cost relief for individual landlords, how many basic rate tax payers did HMRC assume would become higher rate tax payers as a result of the proposal and how many properties did HMRC assume are currently owned by these landlords?

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “04/09/2015 – 21:54“:

Superb, much better 😀
.

Reply to the comment left by “Barry Fitzpatrick” at “04/09/2015 – 21:54“:

My point being….This is how interest has always been treated. The relief has always been there to offset the disallowed tax to give the appearance that the interest costs where allowable. I must admit I had completely missed this distinction until drinks tonight with a landlord friend of mine and his account.

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “04/09/2015 – 21:54“:

Yes, BTL/Barry. HMRC have been playing up if they are asked too many things by one person. Mark Shine: would you like to take one of Barry’s questions? And any volunteers for another 2, so that Barry only asks one?

Reply to the comment left by “Connie Cheuk” at “04/09/2015 – 21:36“:

Connie – councils will be asked to help house the refugees. They will probably be housed initially in accommodation for the homeless where support can be provided. Overtime, councils will try to integrate them into the community. Some will inevitably end up in the private rented sector.