Summer Budget 2015 – Landlords Reactions
2:00 PM, 8th July 2015, 11 years ago
9619
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The concern is;
Budget proposals to “restrict finance cost relief to individual landlords”. 
To calculate the impact of this policy on your personal finances download this software
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Budget 2015 Campaign
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Member Since October 2013 - Comments: 1020 - Articles: 47
2:28 PM, 17th March 2016, About 10 years ago
Reply to the comment left by “Landlord Lucan” at “17/03/2016 – 13:17“:
Hi L L
Section 274A (3) (i) b of the Finance (No. 2) Act 2015 reads:
“the profits for income tax purposes of the property business for the year after any deduction under section 118 of ITA 2007 (“the adjusted profits”) or, if less, the share of the adjusted profits on which the individual is liable to income tax.”
http://www.legislation.gov.uk/ukpga/2015/33/section/24
Section 118 of ITA 2007 prescribes how property losses are carried forward.
http://www.legislation.gov.uk/ukpga/2007/3/section/118
So it is foreseen that property profit from 2017 onwards can be offset against losses brought forward from previous years.
Offsetting losses will reduce both deemed property profit and total income, so the tax relief/reduction may be restricted. Excess finance costs can be carried forward – as a separate item from any remaining losses because they will be added to the finance costs of future years to calculate future tax relief/reduction. This will be true where the reduction is restricted due to the profit. I hope it will also be true where the reduction is restricted due to the adjusted total income. I am waiting for Megan Shaw to confirm which of the two explanations is correct.
Member Since October 2013 - Comments: 1020 - Articles: 47
2:41 PM, 17th March 2016, About 10 years ago
Reply to the comment left by “Kathy Evans” at “17/03/2016 – 13:26“:
Hi Kathy
Many landlords have no income other than rental profits. They will get the 20% tax relief/reduction. I recommend you download the spreadsheet and put your figures in the red boxes of the Calculator sheet – it will show how much tax reduction you will get.
Member Since January 2016 - Comments: 38
3:09 PM, 17th March 2016, About 10 years ago
Reply to the comment left by “Sohail Ratansi” at “17/03/2016 – 13:55“:
Used the calculator, I’ll be £18k worse off, looks like I’m incorporating!
Member Since October 2013 - Comments: 1020 - Articles: 47
3:17 PM, 17th March 2016, About 10 years ago
Reply to the comment left by “Sohail Ratansi” at “17/03/2016 – 13:55“:
Hi Sohail
The RLA’s calculator only tells you the increase in tax if you tell it what the tax would have been without C24. And if you have a salary you need your P60.
The spreadsheet available to download from the top of this page works out the tax with and without C24, and you don’t need your P60.
Member Since January 2016 - Comments: 297 - Articles: 1
3:20 PM, 17th March 2016, About 10 years ago
GO
is only one man. There are 2000000 landlords and 4 m tenants.
If we all form a united front we can cause him problems.
What if we all vote for Brexit?
By june he would be gone.
Member Since August 2015 - Comments: 2
3:25 PM, 17th March 2016, About 10 years ago
Reply to the comment left by “Appalled Landlord” at “17/03/2016 – 15:17“:
Thanks for the clarification will check out the spreadsheet 🙂
Member Since July 2015 - Comments: 247
12:19 AM, 18th March 2016, About 10 years ago
It is interesting to note that the c24 Tenant Tax based on mortgage interest could NOT have been implemented if interest rates were running at a more “normal” level.
As this would have bancrupted most mortgaged LL overnight.
If interest rates climb back to mre “normal” levels most morgaged LL will be taken out overnight.
A clear illustration of the opportunistic, ill considered tax grab.
Member Since January 2011 - Comments: 12193 - Articles: 1395
8:53 AM, 18th March 2016, About 10 years ago
Maybe Government believes that interest rates will take a very long time to rise and will do so slowly And on that basis landlords will sell up gradually?
I’m just trying to understand their mindset.
.
Member Since September 2013 - Comments: 771
8:57 AM, 18th March 2016, About 10 years ago
Yes I think this is true about interest rates not rising anytime soon, but I think the government just wants to help themselves to the amount landlords are saving due to low interest rates.
Member Since May 2015 - Comments: 2188 - Articles: 2
9:23 AM, 18th March 2016, About 10 years ago
Reply to the comment left by “Mark Alexander” at “18/03/2016 – 08:53“:
Mark please do not credit this government with having any coherent plan or mindset. In my humble opinion everything Osborne has done is not for the good of the country neither will his actions solve any of the perceived problems with the economy.