S.E. Landlord

Registered with Property118.com
Wednesday 22nd July 2015


Latest Comments

Total Number of Property118 Comments: 154

S.E. Landlord

11:36 AM, 18th November 2016
About 2 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "18/11/2016 - 10:16":

Already answered that on 17/11/2016 at 9.46.... Read More

S.E. Landlord

8:53 AM, 18th November 2016
About 2 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "17/11/2016 - 23:16":

As I indicated earlier it was a hypothetical situation to illustrate the different tax treatments of loan interest and dividends, I could have quoted any rate but chose what would be an approximate mortgage rate. It remains that loan interest is treated more favourable as a means of funding than share capital in my opinion. I agree that there is no point in spending more time discussing this.... Read More

S.E. Landlord

19:50 PM, 17th November 2016
About 2 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "17/11/2016 - 17:32":

AL, in this hypothetical example I am the director of the company that is being funded either from a loan or share investment of one million. I would be the one able to decide what money is to be paid out as a dividend – or as a bonus to myself (and similarly would be in a position to determine the assets in the company at the time of sale). As such I see the two methods of funding as achieving the same results but with different tax treatments.

For accounting purposes your statement is correct on the reasons for the differences in their treatment, the point I was making from a funding point of view the effects can be the same but the tax treatment is different and on that basis loans were receiving a more favourable tax treatment compared to share funding.... Read More

S.E. Landlord

14:21 PM, 17th November 2016
About 2 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "17/11/2016 - 11:24":

AL, let's assume when I decided to be a landlord I asked a wealthy friend to fund me with a million pounds to buy property and said I would pay him 5% p.a. on the money, if this was as a loan then I would be able to offset the interest cost before tax. If I said I will issue him with shares and pay that 5% as a dividend then I would not be allowed to offset the 5% paid to him as an expense. Both are used to purchase property but the cost of the funding is treated differently for tax purposes. I cannot see why they should be treated differently.

I did not say people should only borrow to buy deprecating assets, the comment was if the money was borrowed to buy an asset that normally appreciates in value I can understand it being treated as an investment and on that basis tax relief not being allowed.... Read More

S.E. Landlord

9:46 AM, 17th November 2016
About 2 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "NW Landlord" at "17/11/2016 - 09:32":

Do I agree with something that increases cost, no. Do I understand why it has been introduced, yes.

In many areas BTL is an investment for capital growth with a very low yield, add mortgage interest being treated as an expense it produces very little tax on the rental income, on that basis I can appreciate why it should be treated as an investment and not a business.... Read More