Profile incomplete
18:34 PM, 3rd August 2015, About 9 years ago 111
Text Size
As part of our campaign to reverse the Government’s Budget proposals restricting finance cost relief for individual landlords we are aiming to lobby all MPs in the UK – and as many times as possible.
We are asking that everyone who is against this proposal firstly signs this petition: https://petition.parliament.uk/petitions/104880
Secondly, and as importantly, we are asking that you write to your MP and preferably follow this up with a visit to your MP’s surgery.
It will be the case for some that you may live in one constituency and have rental houses in other constituencies. Please send emails to all the MPs that are applicable to you.
In order to keep track and make sure we leave no-one out, can you please post in the comments section below the following details:
1. Name of MP contacted via email/letter.
2. Constituency of the MP.
3. Date(s) letters/emails sent.
4. Whether you have spoken to the MP face-to-face and/or made an appointment to see him/her in their surgery.
If you get any response other than an automated reply or acknowledgement, please paste the text in the comments section below, remembering to ensure the full name of the MP and Constituency is included.
Also, later on (bearing in mind MPs’ absences during the summer recess), please also report back on their attitude towards the Budget proposal.
I will be keeping a spreadsheet, to make sure we miss no-one out.
Contacting MPs and persuading them of our case is going to be key to our success in overturning this illogical, unjust and discriminatory proposal. You may be the only person who writes to your MP, so it is very important not to assume someone else will already have done so.
We should especially be looking out for MPs who might be willing to champion our cause as well as those who will be willing to vote against the Finance Bill. If you feel your MP falls into this category, please let us know in the comments section below.
The following is a link to a website with contact details of your MP >>> https://www.writetothem.com/
Below is a sample email/letter to MP’s you may wish to adapt, if you don’t have the time to write one from scratch:
Adjust as necessary, e.g. if you are not a constituent but own property in the constituency, or if you want to add something about the MP’s party’s stance on it etc.
Dear [Name of MP]
I am writing to you as one of your constituents, my address is [ add your address and postcode here]
I am writing with regard to the latest attack on landlords in the Budget, through the proposals to restrict ‘tax relief’ for landlords. Many landlords have been confused about the terminology “tax relief”, so many still don’t realise the effects this would have on their businesses and on the wider economy.
Aafter seeking clarification from HMRC, I have realised that what is really being proposed is that the cost of interest, which is our biggest cost in running our businesses, has been re-defined as ‘income,’ which can be taxed. Obviously, this makes no sense, and this is the verdict of the chief economists who reported to the Treasury Select Committee on the Summer Budget.
If this is to be a new principle of taxation, why aren’t all businesses in the UK facing this bizarre proposal?
Buy-to-let is not a simple, ‘hands-off investment’ as it is sometimes portrayed; it is a very labour-intensive business, often very stressful and for many of us constitutes a full-time job, whereby we work and are on call 7 days a week, including evenings.
Unfortunately, the failure to understand our business (ignorance, by another word), has led to the Government announcing this illogical and unjust proposal.
I am hoping you can use your influence and your vote to help quash this measure.
You will find more details of the proposal on this link to the Property118 landlords forum – LINK >>> http://www.property118.com/?p=76936
The information there will help you to be fully informed, but if you have any questions please let me know and I will endeavour to answer them.
I will be coming to meet you soon at one of your surgeries to discuss this in person.
Yours sincerely
[add your name here]
YOUR Money, YOUR future, YOUR choice.
Previous Article
Tax Efficient InvestmentNext Article
10% wear and tear loss affect on furnished?
Lisa S
14:06 PM, 4th September 2015, About 9 years ago
Reply to the comment left by "Charmaine ******" at "04/09/2015 - 14:03":
It can't be tax evasion if it's done legally....we all have a right to arrange our affairs to pay the least tax we legally can.
Mark Alexander - Founder of Property118
14:27 PM, 4th September 2015, About 9 years ago
Reply to the comment left by "Charmaine ******" at "04/09/2015 - 14:03":
The law regarding tax avoidance ….
In 1936 a landmark legal case was heard in the House of Lords (Inland Revenue Commissioners v Duke of Westminster [ 1936 ] AC1 (HL)). The Duke of Westminster won the case. The judge, Lord Tomlin, stated:
“Every man is entitled if he can to arrange his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure that result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax"
.
Big Blue
14:31 PM, 4th September 2015, About 9 years ago
Reply to the comment left by "Charmaine ******" at "04/09/2015 - 14:03":
David Gauke? Oh dear! His message to the NLA was to suggest we should all feel damned lucky not to have it removed altogether!! I fear no good will come of his reply.
Scott Elliott
15:06 PM, 4th September 2015, About 9 years ago
Reply to the comment left by "Charmaine ******" at "04/09/2015 - 14:03":
Well done charmaine. ... I am still waiting in a reply from him as he is my MP too.
Thanks
Nitzan
21:39 PM, 7th September 2015, About 9 years ago
Hi everyone,
I received the following response from Stewart Jackson, MP, Peterborough:
Dear Ms Marinov,
Thank you very much for your e-mail about mortgage interest rate relief.
The private rental sector is very important, and home to 9 million people, which has significantly increased with an equally sharp rise in buy to let properties. I know that Ministers are rightly determined to support the vast majority of landlords, who look after their properties and are fair to their tenants. However, especially with the need to address the Budget Deficit, we equally have to look at current tax arrangements to find savings in order to cut the (around) £70 billion per year that we continue to overspend.
Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot. This has contributed to the rapid growth in buy-to-let properties, which now account for over 15 per cent of new mortgages, something the Bank of England warned could pose a risk to our financial stability. For this reason, I think it is sensible that the Chancellor announced in the Budget that mortgage interest relief will be limited to the basic rate of tax.
Prior to this change, for every pound of mortgage interest costs a top rate taxpayer incurred, they got up to 45p back from the taxpayer. Furthermore, the better-off the landlord, the more tax relief they get, which I cannot support. This will now be reduced to 20p, gradually over four years from April 2017. I believe this strikes the right balance between tackling this unfair advantage for the richest, while recognising that at the other end of the spectrum many hard-working people have saved and invested in property depend on the rental income they get, and tenants benefit too from a competitive sector.
It is of course important that the impact of changes such as this are reviewed, and I know that Ministers will continue to promote the best interests of the sector. It is worth bearing in mind that the Government continues to oppose so much of the Labour Party Manifesto that would have decimated responsible landlords like yourself with a number of restrictive and punitive measures like rent control, compulsory landlord registration, guaranteed three year tenancies and a number of other measures that would have made Buy to Let investment extremely difficult and off-putting for landlords.
Thank you again for taking the time to contact me and I hope this clarifies the Government's position.
Yours sincerely,
Stewart
Stewart Jackson MP
A strong and independent voice for Peterborough
I responded by copying and slightly changing this letter:
http://www.property118.com/level-playing-field-between-homeowners-landlords/79644/
Dr Rosalind Beck
14:25 PM, 8th September 2015, About 9 years ago
Reply to the comment left by "Nitzan Marinov" at "07/09/2015 - 21:39":
Oh Nitzan. How awful! How infuriating. The Labour proposals would have been a pain, that's all. It's this policy which will decimate the industry. The cheek of calling people who owe the most 'the richest' annoys the hell out of me. They're just a bunch of yes men and they should be ashamed of themselves for repeating this nonsense..It's really good that you have sent him another letter to expose this rubbish for what it is. Well done. Full marks for perseverance.
Big Blue
15:34 PM, 8th September 2015, About 9 years ago
Reply to the comment left by "Ros ." at "08/09/2015 - 14:25":
Exactly right Ros! Why do they persist in saying 'the richest landlords' instead of 'the richest business people'? If I were a wealthy florist, Id still be able to deduct business expenses as they are NOT earnings! If I were a wealthy industrialist, my costs of financing new machinery would be allowable etc etc.
Not one of these people are criticising every other business known to mankind for the 'beneficial tax treatment' they receive, are they?!?! It does somewhat show just how misunderstood this sector is.
Incidentally, I've just spent this morning painting ceilings and fitting a kitchen in my latest £32,000 refurbishment. It occurred to me that the decorators, kitchen fitters, plumbers, electricians etc are all allowed to refer to themselves as businesses, but when I do all that exact work myself - and very often correcting their mistakes after them - I can only be an investment!!
Mark Alexander - Founder of Property118
18:20 PM, 8th September 2015, About 9 years ago
Reply to the comment left by "James Fraser" at "08/09/2015 - 15:34":
The misunderstandings of "The Baffled Innkeeper" sum this up, please see the link below
.
Nitzan
18:44 PM, 8th September 2015, About 9 years ago
Reply to the comment left by "Ros ." at "08/09/2015 - 14:25":
Thanks, Ross. It makes it a lot easier when I can find the right answers on the site. So it's great to have this as a resource.
If and when he gets back to me. I'll use the next argument which is comparing our business to any other business.
Scott Elliott
21:52 PM, 8th September 2015, About 9 years ago
Just got the below through...
Hi Scott Elliott,
You recently signed a petition on the UK Government and Parliament Petitions website to: Reverse the planned tax relief restriction on 'individual' landlords: https://petition.parliament.uk/petitions/104880
The Petitions Committee considered this petition at its meeting on Tuesday 8 September.
The planned tax relief restriction is part of the Finance Bill currently being debated in the House of Commons. This Bill will be looked at by a Public Bill Committee – a group of MPs who go through a draft law in detail and debate it.
The Public Bill Committee can receive views from the public now.
You can find out how to send your views to the Public Bill Committee here: http://www.parliament.uk/business/news/2015/july/have-your-say-on-the-finance-bill-/
You can follow the progress of the Finance Bill here: http://services.parliament.uk/bills/2015-16/finance.html
Because the issue is currently being looked at in Parliament, the Petitions Committee decided not to take any further action on this petition. You can see all the decisions it made at its meeting here: http://www.parliament.uk/business/committees/committees-a-z/commons-select/petitions-committee/news-parliament-2015/8-sept-committee-decisions/
Click this link to view the petition "Reverse the planned tax relief restriction on ‘individual’ landlords":
https://petition.parliament.uk/petitions/104880
Thanks,
The Petitions team
UK Government and Parliament