Summer Budget 2015 – Landlords Reactions

HI
Received today e-news from RLA . Copy-pasted below.

RLA evidence on Stamp Duty, Mortgage Interest Relief and Capital Gains Tax has been officially submitted to the Government.

The association’s submission to the Finance Bill committee has called for new build properties to be exempted from the new Stamp Duty levy. It is also calling for Mortgage Interest Relief to apply only to new borrowing and for Capital Gains Tax to be reduced to 20% where a landlord is selling a property to a sitting tenant.

The submission was made this week after it was revealed that MP Kevin Hollinrake is tabling an amendment to the Finance Bill putting forward the RLA’s recommendation on CGT.

The RLA believes the Stamp Duty surcharge will stop landlords investing at a time when PRS properties are in greater demand than ever and in the submission argues that when a landlord invests in a property which adds to the net supply of housing the charge should not be applied.

It is also asking that the bill ensures landlords retain the right to deduct Mortgage Interest Relief before calculating tax – and that the MIR changes should apply only to new borrowing to minimise the impact on existing landlords who could not have predicted these changes.

The deadline for the submission of written evidence is July 14th, with the Finance Bill to be debated in Parliament later this month.

Is anything happening in Government at the moment?

Reply to the comment left by “Eden Lan” at “06/07/2016 – 21:32“:

In these extremely turbulent times the Government may need us (I mean our money) even more.
If relieved from the Gideon’s stupid regulations, some small landlords may return to the market to start investing. This is something the Government should seriously consider, it may stabilise the prices which are almost certain to go down.
The question is how to get that message through?

Hi
Re my last post 6/7/2016 21.32
Should we all be picking up the phone and sending e-mails (copy paste from this site maybe? there are some really good once ) that were written to other MPs? These emails will help Kevin understand and be able to explain it better at the hearing. His contact details are here http://www.kevinhollinrake.org.uk/
If we agree please all of us should put the effort. I will wait for others to comment whether it is a good idea or not.

Reply to the comment left by “Eden Lan” at “07/07/2016 – 14:08“:

Yes, good idea Eden. I’ll write to him now with links to some of my articles. Some of us are also going to send in submissions to the latest Finance Bill discussions. I thought it was done and dusted, but it would appear there could be room for some manouevre – and obviously we’ll be pushing our anti-S24 message. See this:

https://www.parliament.uk/business/news/2016/june/have-your-say-on-the-finance-bill/

This is Kevin Holinrake’s email address:

[email protected]

Thank you Rosalind. I will not use any of yours since you are going to be using them. I will pick a few from here to do tomorrow. Thank you for the parliament link, did not know anything about it before.

BLT tax changes is a tax fraud on landlords

Sometimes a situation is better understood if the position is considered in the reverse or from a different angle. Let me explain what I mean. Just suppose a landlord ‘s annual mortgage interest on his portfolio is £25000 per year which leaves him with a handsome taxable profit at the end. And just suppose that instead of claiming his actual mortgage costs of £25000 he had put a completely false amount of say £100000 on his tax return which left him without any taxable profit and thus no tax liability. What do you think will happen to that landlord if HMRC found out? We all know the answer; the HMRC would show no mercy, he would be fined, prosecuted and sent to jail for tax evasion and tax fraud.

The recent BTL tax changes means that the Government/HMRC would be acting exactly in the same manner as the hypothetical landlord above. The HMRC would be taxing people on the basis of completely fictitious and non-existent profits. This in my opinion amounts to a tax fraud by the Government/HMRC on landlords. However since this rule is now enshrined in an Act of Parliament the best way to describe the new measures is to call it a “legalized tax fraud by her Majesty’s Government and Her Majesty’s Revenue and Customs”.

Reply to the comment left by “Neil Patterson” at “08/12/2012 – 14:50“:

BLT tax changes is a tax fraud on landlords

Sometimes a situation is better understood if the position is considered in the reverse or from a different angle. Let me explain what I mean. Just suppose a landlord ‘s annual mortgage interest on his portfolio is £25000 per year which leaves him with a handsome taxable profit at the end. And just suppose that instead of claiming his actual mortgage costs of £25000 he had put a completely false amount of say £100000 on his tax return which left him without any taxable profit and thus no tax liability. What do you think will happen to that landlord if HMRC found out? We all know the answer; the HMRC would show no mercy, he would be fined, prosecuted and sent to jail for tax evasion and tax fraud.

The recent BTL tax changes means that the Government/HMRC would be acting exactly in the same manner as the hypothetical landlord above. The HMRC would be taxing people on the basis of completely fictitious and non-existent profits. This in my opinion amounts to a tax fraud by the Government/HMRC on landlords. However since this rule is now enshrined in an Act of Parliament the best way to describe the new measures is to call it a “legalized tax fraud by her Majesty’s Government and Her Majesty’s Revenue and Customs”.

Reply to the comment left by “Abdul Choudhury” at “08/07/2016 – 10:32“:

Hi Abdul
I call it legalised theft or confiscation of assets!

Hi
We can all argue about it here but it is not going to get us anywhere please we have only few days to make our case and it is by writing emails NOW. Every one please do your bit write/send e-mails. please see Rosalind and my post above 7/7/2016.