Landlords – Tell the Chancellor what should be done before the Autumn Budget

by Property118.com News Team

9:07 AM, 30th August 2017
About A year ago

Landlords – Tell the Chancellor what should be done before the Autumn Budget

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Landlords – Tell the Chancellor what should be done before the Autumn Budget

HM Treasury has said it welcomes representations as part of the policy-making process and the views of stakeholders are gratefully received.

There will now only be one Budget each year held in the Autumn with a Spring Statement in 2018, but this will not be a major fiscal event.

Guidance has been issued by HM Treasury on how to submit a Budget representation with the aim of commenting on government policy and suggesting new policy for inclusion in the upcoming Budget.

Click Here to see Guidance for submitting your Budget representation

Property118 Campaign Member, Dr Rosalind Beck, has made the following submission below and would encourage all Property118 readers to make their own or similar submissions.

Proposal for Budget to either:

(a)    Scrap Section 24 of the Finance (no. 2) Act 2015; or:

(b)   Make the measure only apply to new purchases.

The evidence for the need to scrap this pernicious measure is outlined in my report below:

SECTION 24 of the Finance (no. 2) Act 2015: “The unjust legislation that will make the UK housing crisis much worse”

1) There are many reasons why this bizarre tax on revenue (overturning the centuries-old principle that taxable profit = revenue – costs) should be scrapped, but perhaps the most pressing one in financial terms is that it will lead to high levels of homelessness amongst the worst-off in society. This is because it necessitates landlords maximising rents and evicting those with the fewest means to pay those rents. This is already occurring. Any revenue from this new tax levy which the Treasury expects to receive will be dwarfed by the costs of dealing with the homelessness which it will cause.

2) Ideally it needs to be completely reversed, but if this is felt to be undesirable for whatever reason, it should at least only apply to new purchases, in order for it to not be retroactive. Whilst this would mean that private landlords would not expand their portfolios (and therefore would not develop much-needed housing), it would not punish and in some cases ruin landlords’ businesses, livelihoods and pensions by retroactively taxing them (many landlords are effectively tied into their mortgages and cannot simply sell, so will have to deal with the new potentially infinite tax rates introduced by the measure).



Comments

Neil Patterson

10:13 AM, 30th August 2017
About A year ago

Submission from another campaign team member:

"Section24 abolished I have evicted my 10th Tenant due to this policy as I need to raise rents or face bankruptcy these tenants are now homeless and at the mercy of the council.

Add a tick box to ask if tenants have rent arrears anti social behaviour etc on the section21 eviction . Presently data being collected does not show the true picture. Many landlords use this route for quicker evictions.
Make evictions quicker currently it can take 7 months to get a bad tenant out as they will wait for the bailiff.

Allow third party deductions for landlords AFTER the tenant as left the property. This will discourage them trashing properties and running up rent arrears if they have to pay for it. To many tenants keep repeating rent arrears and damage at numerous properties with no intention of paying. Make them responsible and we might get a fairer society."

bhrat Kapur

12:32 PM, 30th August 2017
About A year ago

HI Team

Here is the impact of Tenant Tax (Clause 24) clearly visible. (Homelessness and Genocide of poor and sick).
It is causing Homelessness in London and will cause homelessness everywhere else in the country soon.
See link Below.( Or Search google for "Evening Standard Surge in rough sleeping on Tube".)

https://www.standard.co.uk/news/transport/surge-in-rough-sleeping-on-london-night-tubes-and-buses-a3621811.html

When the winter comes, the homeless people will start to die of cold just like sick people are dying of NHS cuts. The tory Government (Corrupt Politicians) who are handing tax money to their crony builders (by promoting Help to Buy) and extorting Landlords using Tenant Tax will be responsible for Genocide due to homelessness in cold weather just like they are responsible for Genocide of sick by NHS cuts. They are promoting Big Corporate Landlords just like NHS privatisation. This is prima-facie and clear-cut case of immoral and corrupt actions in high places.

God knows what Serious Fraud Office and Labour Party are doing about it. (probably labour is complicit).

May God will help Landlords, homeless and sick in the coming times.

This crime will never pay those who are committing it.

Simon Lever

15:23 PM, 2nd September 2017
About A year ago

Reply to the comment left by bhrat Kapur at 30/08/2017 - 12:32
Hi Bhrat

No matter what your personal feelings and political persuasions are this sort of response sent to the Chancellor will do more harm to the cause than good.

It would be better to give evidence that the underlying presumption for the introduction of the policy that only 1 in 5 landlords will be effected is wrong. This is far more likely to get a result than spouting off!

Hemant Shah

22:04 PM, 2nd September 2017
About A year ago

Chancellor is punishing landlords for no reason.
Landlords work hard to provide facilities to tenants, which isn't provided by the council
Council provide facilities by putting cladding on the buildings which jeopardize tenants life.
Chancellor should implement new regulations (Section 24) for the new landlords, so they act appropriately.
Old landlords were not given opportunity or lesson for these changes or not made aware of tax changes.
How do you want us to survive?
You are telling us to provide least facilities to tenants and pay more tax.
Pay tax first then pay mortgage because we are not commercial landlords. ISN'T THIS DISCRIMINATION?


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