Philip Hammond is prepared to U-turn – Now put the pressure on to reverse Section 24!

by Property118.com News Team

13:44 PM, 15th March 2017
About 2 years ago

Philip Hammond is prepared to U-turn – Now put the pressure on to reverse Section 24!

Make Text Bigger
Philip Hammond is prepared to U-turn – Now put the pressure on to reverse Section 24!

Philip Hammond, Chancellor of the Exchequer, wrote that it is important to keep to the letter and spirit of the Manifesto and today announce a U-turn on the increase of Class 4 National Insurance Contributions in his budget last week.

Now we have to get the occupants in Number 10 and Number 11 to reverse Section 24.  They have both been shown the effects by landlords in their constituency surgeries.

I have now sent this letter to my MP and would encourage all Landlords to do the same:

Dear Andrew,

I see that today both the Chancellor of the #exchequer and the Prime Minister have states that they will abide with the letter and the spirit of the Conservative manifesto.

Would you therefore write to both the PM and Chancellor requesting that in accordance with their statements to Parliament today that they repeal s.24 of Finance Act 2015 as it break the pledge make and increases the effective rates of Income Tax that Landlords have to pay to 60/70/80 and in some cases in excess of 100% of actual profits. Please ask them not to use weasel words saying that the rates have not been raised (which is true) but they’ve deemed that finance costs (mortgage interest) should be treated as taxable income.

I will eagerly await their answers.

Barry



Comments

Tobias Nightingale

11:36 AM, 16th March 2017
About 2 years ago

Reply to the comment left by "Barry Fitzpatrick" at "16/03/2017 - 11:18":

Thanks for sharing the story. I think its 50/50 in terms of what % is genuine bad/wickedness and genuine stupidity. On the latter some would say how do they become MP? To that I say with some backing simply put because no one else wanted to, so by default they become MPS. Really just like trump in the states, a party like UKIP (for all their flaws) all the stars are aligned for a populist party like them, ie cut taxes and cut genuine waste and cut red tape (such as the 4 returns a year)cut immigration (like it or not it has become unpopular). But sadly they have not got their act together, having said how much of that is because of the establishment behind the scenes undermining them.

Charles Mackay

12:43 PM, 16th March 2017
About 2 years ago

I would be careful what we wish for - the Chancellor may very well 'level the playing field' between individuals and Ltd companies....by also removing the ability to offset mortgage interest to those properties held in a ltd company wrapper. He has already stated he plans to fill to £2bn hole created by his NIC climb down in the Autumn budget. One thing is for sure, he won't be revoking/reducing any more taxes!

"He would use the Autumn Budget to set out further measures to "fund in full" the £2bn lost from NICs, he said."

Whiteskifreak Surrey

13:03 PM, 16th March 2017
About 2 years ago

Reply to the comment left by "Charles Mackay" at "16/03/2017 - 12:43":

Removal of offsetting - Not likely in the foreseeable future IMHO. He needs to kill all private incorporated LLs first - or force them to incorporate at enormous cost.
Then he can do something about it, but he would risk to upset a hand who feeds him (big Buy/Build to rent companies, the Tories donors)
Who knows what will happen after March 2019 - when we will be out of EU.
I have calculated that by that tax they locally lost at least 12 votes. If we calculate we have 10 students that means maybe 20 votes, as generally the parents have to fork out the increase...
NEVER EVER vote Tory again. I would rather vote Green than either Cons or Labour

Ray Edwards

13:34 PM, 16th March 2017
About 2 years ago

Involve tenants? I've adapted Dr Beck's letter and sent to Boris - I've also asked my tenants to do the same as it affects them also!

Jamie M

23:06 PM, 16th March 2017
About 2 years ago

Whats next?
Well today I heard what's next and that is the government seeks to "level the playing field" between private motor vehicle ownership and taxis. Yes folks it's on their radar. You see these Einsteins have figured out that private car owners are being disadvantaged because they don't get any tax relief when they refuel and its unfair that Taxi drivers can claim all fuel as a tax deduction before declaring how much they make which is to be taxed.
This clearly disadvantages private car owners so the government have decided to level the playing field and charge all taxi drivers tax on 100% of the fares they collect less repairs and maintenance but NOT including their biggest expense Fuel!
Invest in push bikes folks, I can see sales soaring up until the point they discover the rubber used on pushbike tyres is poisonous to the lesser spotted dickhead and then they tax pushbike pedals at £1 per revolution to save the friggen planet and the lesser spotted dickhead!
Whats next? we all wake-up and find this insane crap is just a bad dream!

Whiteskifreak Surrey

10:58 AM, 17th March 2017
About 2 years ago

Reply to the comment left by "Jamie Moodie" at "16/03/2017 - 23:06":

This is a joke, Jamie, right?
That "Taxi" idea was on this forum - I think in the thread Summer Budget 2015 - Landlords Reactions. About 9 moths ago, I think.
Ray Edwards says about involving tenants. So far we explained clearly to them why they are getting rent increase, and who they should contact to complain.
I think involving a major newspaper currently against the Government (no idea which though) might be a next step. To which one shall I write? Anyone knows?

Charles Mackay

11:21 AM, 17th March 2017
About 2 years ago

Reply to the comment left by "Whiteskifreak Surrey" at "16/03/2017 - 13:03":

Whiteski,

I'm not sure what you mean by "private incorporated LL's"? you either hold property as an individual or within a company, no such thing as " private incorporated LL"...

Also, I don't see how removing ability to offset mortgage interest will effect the big build to rent companies. They won't be using mortgages to fund their builds. They will be using investors capital.

Jamie M

11:21 AM, 17th March 2017
About 2 years ago

Reply to the comment left by "Whiteskifreak Surrey" at "17/03/2017 - 10:58":

Yes it's a joke
That's a direct analogy of what the lesser spotted dickheads are doing to us

Do you know any sane journos we can engage with

I am meeting Paul Nuttal next week to explore this via UKIP

My MP T Mathias thinks this is reasonable because the BofE endorses it. Gawd there is no bloody hope. She's never been in business.

Whiteskifreak Surrey

11:27 AM, 17th March 2017
About 2 years ago

Reply to the comment left by "Charles Mackay" at "17/03/2017 - 11:21":

Apologies, should have been private UNINCORPORATED LLs.
You are right, build to rent might not be affected.
Sorry!

Appalled Landlord

12:00 PM, 17th March 2017
About 2 years ago

Reply to the comment left by "Jamie Moodie" at "17/03/2017 - 11:21":

Hi Jamie

The Bank of England did not advise Osborne to restrict the deductibility of finance costs.. It did not advise Osborne to make landlords bankrupt or make tenants on benefits homeless.

My MP also referred to the Bank of England’s concern that “ the rapid growth of buy to let mortgages could pose a risk to the UK’s financial stability”, and went on to say that he “therefore appreciated the Government’s rationale for imposing tax relief restrictions”.

My reply to him can be seen here, posted on 14 March at 17.25: https://www.property118.com/budget-2015-landlords-reactions/76164/comment-page-955/#comments

Please feel free to send a copy to your MP.- everyone is welcome to. You would need to replace “last year” with “in 2015” in the penultimate sentence. You could also send her Dr Beck’s report by including this link: https://media.property118.com/wp-content/uploads/2016/10/6G0YKMd1Wf.pdf

As regards the broken manifesto promise, everyone whose MP is a Tory is welcome to tell him or her that “Section 24 breaks the Manifesto promise, but in a much worse way than the NI increase - in one real example 60 times worse: https://www.property118.com/broken-manifesto-promises/95377/

1 2 3

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

84% of private renters satisfied or very satisfied

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More