Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Mark Shine” at “13/10/2015 – 12:18“:

Hi Mark.
How do you get to listen to it? I seem to keep getting a message ‘committee room 10 sound.’

Reply to the comment left by “Ros .” at “13/10/2015 – 12:50“:

Pull the slider along until you reach 10:05 on the left hand side of the slider.

http://www.landlordsguild.com/buy-to-let-gripped-by-uncertainty-say-lenders/

Reply to the comment left by “Jon Pipllman” at “13/10/2015 – 11:09“:

Jon,

You are correct that, it has been passed unanimously but that, does not mean that this will actually become law.

Having spoken to my account, who has told me that, throughout his career he has never seen any budget announcement which did not pass in Finance Bill.

Finer details will be looked at in around November time and then you will realise how this will actually have an impact on you.

Prime Example, Chancellor announced in December 2013 that, Non Residents will no longer benefit from NON RESIDENT TAX EXEMPTION from April 2015, however when finer details were released it showed that gains accrued up until 2015 will remain Tax free should resident decides to become Non Resident.

You are correct Saeef. It has indeed only passed the committee stage today. There are still a number of other stages to go.

The progress of the bill can be seen here

http://services.parliament.uk/bills/2015-16/finance.html

Amendments are considered towards the end of the process according to the graphic

Reply to the comment left by “Jon Pipllman” at “13/10/2015 – 14:27“:

The rumour has it that, they will exempt first £50000 of total interest paid so small time investors do not get caught out.

So in other words they will allow £50000 as a deductible expense for all investors and it won’t get added on to their other incomes to push them into higher rate tax bracket and they will proceed rest how they announced.

A couple of weeks ago BBC Radio 4 programme You and Yours did a feature on what is wrong with the rental market. There was no mention of this tax change despite one of the callers being from the RLA. I emailed them as did others from 118.

Great timing today as I got a call from the researchers this afternoon wanting to know more and they are very interested in interviewing me in the studio or having a reporter come out with me for an hour to see me get my hands dirty.

Whilst I dread the thought of either I’m up for it to try and give more publicity to the issue. Usually when I have a focus on me like this I try to pick my words too carefully and end up looking tongue tied and an idiot. Still, this is an opportunity for some media coverage and I’m sure there will be more.

I have no idea when the prog might be aired yet.

Reply to the comment left by “John McKay” at “13/10/2015 – 16:57“:

Nice one John. It’s good to have a bit of nerves as you will be better prepared then. Fingers crossed.

Saeef – where did you hear this fabulous rumour?

I listened to the ridiculously brief and feeble discussion of Clause 24 earlier.

‘Sorry, Mr Chair, if I may ask something about this. I don’t know much about it… I don’t understand the technical aspects…’

‘Oh, it’s fine. Only wealthy people will pay and they are the awful portfolio, money-grabbing landlords. They don’t matter.’

‘Oh thank you. I vote ‘aye’ for the clause.’ etc. etc.

I can’t bring myself to listen to that crap again, from people who clearly read none of the expert opinion, arguments, statistics, examples and so on. But I heard a new statistic – something about 6% of landlords having an income of less than £35,000, and these being the highly-geared ones, owning an average of 6 point something properties.
Would I be right in the following:
2 million landlords in the UK?
6 % of 2 million: 120000.
120,000 by say 6.5 properties: 780,000 properties?
Can someone tidy this up for me and make it a bit more accurate?

If my figures are more-or-less right, then their ‘tiny’ number of people affected, if there are 2 people in each property (I don’t know what the average of this is either – maybe someone does): then only 1.56 million tenants and 120,000 landlords will be affected, so no need to worry.
Apart from the fact that that it would still be ‘plain wrong’ even if it were 100 people being exposed to the possibility of being charged extortionate rates of tax on non-existent income.

Reply to the comment left by “Saeef Khan” at “13/10/2015 – 15:18“:

Nice if it’s true Saeef.I own all my properties jointly with others so i can not see how it would work unless we all received the £50000 allowance which would equate to £200,000 in total .Ain’t gunna happen i guess!