Landlords are selling up because of legislation and tax changes

Reply to the comment left by Old Mrs Landlord at 16/01/2025 – 09:21
Yes, that makes sense – but in your accounts you should have mad in effect ‘an invoice’ for the rent due which was not paid – so you get taxed on it , but then claim it back as it was not paid. – same result bust means you account for it in your books.

Reply to the comment left by Old Mrs Landlord at 16/01/2025 – 09:21
Yes, that’s correct.

I haven’t had this rent, as it has been paid out on expenses, mainly mortgage interest payments.

To enable corporate takeover of the PRS – semi – public / private – impossible for individuals…

Since my last post, I have taken the decision to sell a further 2 of my properties, I currently have 2 on the market, this decision has been reached due to the tax situation, I can not continue to subsidise my tax bills each year.. I had hoped that my portfolio would be my retirement, but the Government have made this impossible.

How can they think that it’s lawful to charge landlords on rent, they have paid out in expenses, with a measly 20% allowance, which puts me in a negative position. Of course pay tax on income, but this is not income it’s me subsidising from savings!

Now 11 people will need to find alternative accommodation, unless I can sell to other investors, which based on my experience in the sales market, is most likely to be either first time buyers, those looking to downsize or relationship splits, not other landlords.

Time to cash in and move away from the UK. This Country now only benefits those who are handed money from the Government.

Rant over, maybe the politicians, especially those politicians responsible will actually think about this?????

Reply to the comment left by GlanACC at 16/01/2025 – 12:37That makes no sense. HMRC will look at her business bank account and see that the rent amount was received. The fact that it was more than offset by mortgage(s) is neither here nor there to them since the change in the tax regime introduced when George Osborne was Chancellor (S.24 2015 Finance Act). A 20% deduction will be applied at the final stage of the BTL tax calculation but this will still leave her out of pocket because of aggregation with her income from other employment. There are many others in her position and many more who have sold their rentals or quit their jobs as a result. Karen is taking the only sensible option open to her, with the result that she will be poorer in retirement unless she can invest the proceeds of sale into a better investment.

Reply to the comment left by Old Mrs Landlord at 18/01/2025 – 12:51
My accountant does all my accounts and we have looked at all options available to me.. the tax is assessed on the total rent received, with 20% allowance off my expenditure.

They are all mortgaged and most are leasehold, with rising service charges.

Not an easy decision, but I can’t sustain a property portfolio which is in my personal name.

‘only being able to claim 20% tax relief on expenses, such as mortgage interest payment, leasehold costs and repairs and maintenance is killing me’

‘the tax is assessed on the total rent received, with 20% allowance off my expenditure’

Reply to the comment left by Karen Cadore at 18/01/2025 – 13:11It’s a 20% allowance for your mortgage interest but your other expenses are fully deductible.

Reply to the comment left by Karen Cadore at 18/01/2025 – 13:11
It’s a 20% allowance for your mortgage interest but your other expenses are fully deductible.

Reply to the comment left by Debra at 20/01/2025 – 01:45

Hi

That’s interesting, I will ask the accountant, if this applies to leasehold costs and repairs & maintenance.

My tenants have just given notice.
I’m selling.
Will post if I sell to landlord or family etc.