Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Ros .” at “13/10/2015 – 17:49“:

Their line: ‘The government expects around 94% of landlords who will have to pay more tax will have a taxable of income over £35,000′ (sic)

could equally be: ‘The government expects around 6% of landlords *who will have to pay more tax* will have a *taxable of income* below £35,000′

Most of the public (the VOTING public is all that MPs are concerned about, as well as their incorporate LL sponsors no doubt, and indeed many members of Jon Pipplman’s other forum) fail to realise is that the majority of LLs (whether incorporated or unencumbered who currently own the majority and will in future own more of the PRS as a direct result of C24) WILL NOT BE AFFECTED BY C24 and may positively welcome it for the effect it may have on their businesses.

Longer term the CGT revenue will massively decline purely as a result of C24. But HMT and HMRC not bothered about that it seems,

Reply to the comment left by “Lisa Stux” at “13/10/2015 – 14:14“:

Hi Lisa

Everyone but the government see the clause 24 as a mistake or dangerous.

And I would say it definitely is a pitch against home buyer and buy to let to get the votes, But I still maintain the real reason is the big boys.

BUY TO LET IN THE CROSSHAIRS

http://www.mortgagestrategy/buy-to-let-in-the-crosshairs/

>Mark S

“…the majority of LLs (whether incorporated or unencumbered who currently own the majority and will in future own more of the PRS as a direct result of C24) WILL NOT BE AFFECTED BY C24 and may positively welcome it for the effect it may have on their businesses….”

A point I have repeatedly made on multiple forums and in discussions in the real world too.

My own BTL business model has seen me priced out of the type of house I want to buy in the type of area I want to buy it for a lot of years now. Maybe C24 will nudge things back in my favour a touch.

It has to go through a report stage and third reading in the Commons, and then through the same process in the Lords before Royal Accent.

Saaef – can you cite your source for exempting the first £50k of interest?

Reply to the comment left by “ray selley” at “13/10/2015 – 18:21“:

Ray, if you recall, Chancellor stated in budget statement in summer that, he understands that, some people have worked hard and use investment property as their retirement/saving plan and we’ll do everything to support it.

In today’s discussion in Parlimanent it transpired that, 94% of investors were being affected as opposed to less than 1 in 5 as orginally stipulated by treasury (maladministration).

Clearly there is a discrepancy in figures which loses their credibility. If you look at Jon’s link, which stipulates once Committe has followed their process having passed the legislation….FINAL PIECE OF JIGSAW IS THAT, THEY MAKE AMENDMENTS.

How do I know, that, this is likely to happen, I have spoken to 4 different accountants and all of them have stated exactly the same that there will be an exemption, for small to medium investors will not be affected by having an allowance of £50k. (This is the ONLY way smaller landlords can be shielded)

So if you have small portfolio and borrowings of around 1 million £’s then you could be in luck..others could quite simply shrink their portfolio.

However, it is rumour only but we’ll know for sure in next 6 weeks or so.

Fingers Crossed.

Seems logical Saeef-you never know it could just happen

The real fear is that this becomes a political hot potato and both the main parties try to outdo each other by over taxing and over regulating the sector more and more

Someone posted that a conservative MP said that the changes were good and expect more.

If this goes though I suspect they will wait and see what impact it has and if its not too bad they will get rid of the other half (ie no finance costs)

Personally I think that cash purchases of rental and high deposit (40-50%) BTLs will keep the sector growing so even though it will impact individual geared landlords the sector will not contract

So my guess is that if this goes through and if the conservatives win the next GE expect the other half of finance costs to be phased out between 2020-2025

Reply to the comment left by “Saeef Khan” at “13/10/2015 – 19:27“:

Very much doubt it.
Government employees (HMRC) being misled about the tax changes??

Hears a link to the discussion of Clause 24 by the Public Bill Committee today.

It lasts about 10 minutes

http://goo.gl/4S9wsX