Barry White

Registered with Property118.com
Thursday 20th August 2015


Latest Comments

Total Number of Property118 Comments: 24

Barry White

11:22 AM, 2nd December 2016
About 3 years ago

An inconvenient truth is 100% of rents will be going up?

Isn't this just 71% of Landlords who will be affected, as opposed to 71% of all landlords? The government say that just 1 in 5 landlords (20%) will be affected by S24. As such, this points to 14.2% of landlords increasing rents (14.2% being 71% of 20%).

Assuming that all landlords own the same number of properties (as appears to be the tacit assumption in the article) then the actual figures for the number of tenants receiving rent increase notices is 600k (14.2% of the 4.3mln tenants) as opposed to the 3mln (71% of 4.3mln) cited in this article.... Read More

Barry White

10:12 AM, 11th October 2016
About 3 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Simon Hall" at "11/10/2016 - 08:31":

I think the article is mistaken. It appears the PRA statement referred to in the article is referring to "personal tax changes" and given the context regarding "portfolio landlords, who are not set up as limited companies", it seems more likely that the PRA statement refers to S24 than stamp duty. The author of the article needs educating.... Read More

Barry White

18:09 PM, 3rd September 2016
About 3 years ago

Capital gains on BTL to be taxed as income

Reply to the comment left by "Jack Ass" at "03/09/2016 - 17:21":

Are you saying that the only way your rental property economically makes sense is if there is the prospect of capital gains? I'm not sure I would Mention it on a public forum given the wording of point 2.5 in the main article above... Read More

Barry White

11:45 AM, 25th September 2015
About 4 years ago

Barry White

11:32 AM, 25th September 2015
About 4 years ago

Summer Budget 2015 - Landlords Reactions

I haven't been on for a while, but had to play devil's (sic. HMRC's) advocate for the argument that "BTL is a business and takes a lot more time, involvement, phone calls about no hot water etc which you don’t get when buying shares". I believe that there is an argument that HMRC could make regarding the "BTL requires time and effort" stance (I am not saying it doesn't take time and effort, btw).

Anyway, I think it could be argued by HMRC that phone calls about no hot water etc are considered as property management activity (theoretically, it can be performed in its own right, regardless of who the asset owner is).

With this in mind, it could be further argued that BTL as a business can be split between a property management activity and an investment activity, for which well-defined costs, income streams and taxes can be apportioned.

For example, HMRC could argue that estate agents charge around 10-15% in management fees, therefore the property management activity part of BTL amounts to some 15% of gross rental. This would be apportioned as 1) a cost to the investment activity and, 2) an income for the property management activity.

If HMRC takes this tack, and as the "time and effort" has been deemed to constitute only 15% of the gross rent, this leaves landlords having to argue to HMRC that the remaining 85% of gross rent is not investment income and ultimately that BTL is not an investment activity (even though it could be deemed that the majority of income is not from business activity).

It's just something to think about and kick around. If you don't think that HMRC could argue it then please feel free to ignore.... Read More