Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “NW Landlord” at “24/07/2016 – 14:58“:

You could well be right – organising a corporate structure to optimise the business can be legitimate.

But, on the basis that it is tax that is moving people to consider such schemes and that HMRC is specifically interested in schemes that are ‘expected to provide a tax advantage’ there is a case to be made for cautious people proceeding with caution.

If I was doing it, I would err very much on the side of caution and contact HMRC to ask them if the scheme required notification under DOTAS (I don’t think it does) and to invite it to comment on the scheme in general, particularly with respect to ‘arm’s length’ principles.

The reason I would do this is that if HMRC did later dismantle the scheme and chase the tax saved + interest + penalties, the effect would be catastrophic financially.

I would, therefore, rather go into it having demonstrably engaged with HMRC to give them the opportunity to rule on it sooner (and more cheaply), rather than later (and more expensively).

Same with lenders really. I would rather know that they agreed or not. Rather that than jump every time a letter landed on the mat, thinking that it could be notification that important loans were being called in for breach of conditions.

I am in no position to advise, or want to advise, it is just what I would do.

Reply to the comment left by “NW Landlord” at “24/07/2016 – 14:58“:

But how do you deal with mortgage lenders getting paid by a ltd co? Or HMRC calling you out on being a connected party?

Don’t get me wrong NWL, I hope the option idea works, and would use it if it did, but I foresee issues.

Reply to the comment left by “Jon Pipllman” at “24/07/2016 – 15:16“:

Agree with your rationale.

On another note I fear all that time you previously spent with the copy/paste keyboard warriors @ HPC Jon, trying to play the long game to educate them was simply a waste?

Those poor souls still genuinely believe that the fall of ‘Mrs Residential Landlord’ and the simultaneous rise of ‘Mrs Residential Landlord Ltd’ will somehow help their cause.

Another org on board

http://www.propertytribes.com/tax-payers-alliance-report-slams-btl-taxes-t-127625864.html

So the written application for a Judicial Review has been refused…

https://m.facebook.com/story.php?story_fbid=1200838726625796&id=1077700412272962

Although confidence that an oral application will be accepted seems high.

Reply to the comment left by “Jon Pipllman” at “24/07/2016 – 15:16“:

Being a small Ltd Co may be a mixed blessing soon. The Office of Tax Obfuscation is recommending using Pass through taxation for small Ltds, in other words taxing their profits as though they were the shareholders’ personal income using sole trader rules. That would make it impossible to retain profits or grow the business, and would mean paying 40% + on profits where big companies would pay 20% or less. Yet another attack on small businesses in favour of large ones.

Reply to the comment left by “Kathy Evans” at “30/07/2016 – 13:28“:

Now can we all understand why Mark Alexanda has moved to Malta, I am moving to the Philippines, my elder son is moving to Spain and my younger son is currently in the process of deciding where he is going. The whole country is being taxed out of existence.

It gets better and better being a landlord in th uk

http://www.telegraph.co.uk/news/2016/07/30/green-tax-to-hit-landlords-with-5000-bill-on-buy-to-let-homes/

Reply to the comment left by “NW Landlord” at “31/07/2016 – 10:14“:

“Philip Hammond, the new Chancellor, has signalled he will not change the approach despite the concerns of some Tory MPs.

Craig Mackinlay asked in the Commons if the surcharge is “necessary, desirable or indeed raises any additional revenue”. Mr Hammond said taxation “is there for a simple purpose: to raise revenue. I expect the taxes we put in place to achieve that.”