Rental market frenzy: Tenants face 25 enquiries per property
3 years ago | 8 comments
Michael Gove, Section 24 and Mars bars?
by Mick Roberts
12:02 AM, 2nd November 2023, 2 years ago
35
Last week Housing Secretary Michael Gove stated that he had been in discussions with HM Treasury to investigate the possibility of providing additional tax incentives for landlords.
Mr Gove was asked at the NRLA conference whether the mortgage interest relief removed by George Osborne in 2015 would be reinstated.
Mr Gove said: “I do recognise that since 2015 the gradual withdrawal of mortgage interest relief has been difficult for many within the private rented sector.
“There are two factors in play here [why the government won’t be reinstating it] – one is that many older landlords have properties on which they had relief; and why should a landlord have a more favourable tax regime than those seeking to buy properties as a home for themselves?”.
The private person doesn’t get tax relief on a Mars Bar because he’s purchasing it for himself, so he doesn’t get charged any tax to use any tax relief. The stupidity of Michael Gove!
The shopkeeper does get tax relief otherwise there would be no shops if he didn’t.
Same as why now you have no houses, and it has cost the government and councils way more in homelessness since George Osborne introduced this barmy Section 24 setup. Never mind the human turmoil on desperate tenants.
You buy a car for yourself, you don’t need tax relief. A car rental buys to rent out, and he or she gets tax relief. Otherwise, there’d be no car rental companies.
Tags:
Housing market, Mortgage Interest Relief, Private Rented Sector, section 24, Section 24 Impact on UK Landlords, tax incentives
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The Idiot's guide to Renters Reform Bill- UPDATERelated Articles
Long term leases subject to Section 24?
3 years ago | 5 comments
A thick fog of stupidity, jobsworths and Section 24
3 years ago | 16 comments
Member Since January 2023 - Comments: 5
1:46 PM, 2nd November 2023, About 2 years ago
If you put a sock up an exhaust pipe eventually the engine will stop running..that’s exactly what section 24 is doing the rental market.!
Member Since September 2023 - Comments: 173
1:48 PM, 2nd November 2023, About 2 years ago
My greatest issue with S24 is that some landlords (and their tenants) are affected by S24 and others (and their tenants) are not. A flat rate tax, based on rental income, would be much fairer.
Member Since August 2021 - Comments: 307 - Articles: 1
1:55 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by Monty Bodkin at 02/11/2023 – 10:52
Unincorporated landlords have seen their effective tax rates rise higher than any equivalent business group.
Not only are we subject to the complexities of S24 (and it’s various caps on the 20% tax credit), we also have:
3% on capital invested (SDLT surcharge)
8% CGT surcharge + penalties if not paid 60 days from sale
No Rollover Relief on CGT if we sell our business asset and reinvest in another (reducing funds available to invest in housing)
No tax relief if we invest our rental profits in a pension fund (other than £3,600 allowance which hasn’t changed in decades)
No IHT relief on our business assets – forcing administrators to evict tenants in order to sell to pay IHT
Only furnished holiday lets qualify for some of these reliefs, are not subject to S24 and get capital allowances.
No wonder so many landlords pivoted part of their portfolio to Airbnbs with only customer reviews to worry about.
In 3 weeks time, the Autumn Statement will once again confirm that this government are unwilling to support landlords and their tenants despite the housing crisis.
Member Since June 2015 - Comments: 330
2:08 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by TheBiggerPicture at 02/11/2023 – 13:37
Homeowners get vastly superior tax treatment with much lower or no SDLT when they buy and no CGT when they sell.
As rental income is classed as unearned investment income we can’t even get the tax relief everyone else enjoys if we contribute our earnings to a SIPP.
Member Since April 2022 - Comments: 132
2:24 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by Easy rider at 02/11/2023 – 13:48
“A flat rate tax, based on rental income, would be much fairer.”
No, what would be fairer would be for loan interest to be a fuly allowable expense like any other business. What is this flat tax rate nonsense?
Member Since October 2023 - Comments: 201
3:10 PM, 2nd November 2023, About 2 years ago
What doesn’t Gove understand? Businesses get tax relief for borrowing. A mortgage is a form of borrowing. Is the Private rented Sector a business, or just a bit of a hobby? If its a hobby, why are we paying income tax on it?
Member Since June 2013 - Comments: 3237 - Articles: 81
3:14 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by Easy rider at 02/11/2023 – 02:27
I’m lost with your double negative. If it means what I think it means, Oh I know many that’s homeless now cause of S24 & Landlords selling.
Member Since June 2013 - Comments: 3237 - Articles: 81
3:15 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by JamesB at 02/11/2023 – 09:06
Exactly James:
“but that’s because homeowners don’t pay tax on their property in the first place”
Yes James, we all thought same, it was that stupid a retrospective decision, that none of us thought They can’t bring that in, Landlords would be losing & tenants be homeless. Well done George Osborne Bright Spark.
Member Since June 2013 - Comments: 3237 - Articles: 81
3:17 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by Grumpy Doug at 02/11/2023 – 09:15
That’s it Doug, many don’t understand it when I try to explain it to some.
I’d like someone to write out the most simplest short explanation we could all show tenants, so they could understand what this Govt has done to their homes & rents.
Retrospective too.
Member Since June 2013 - Comments: 3237 - Articles: 81
3:20 PM, 2nd November 2023, About 2 years ago
Reply to the comment left by Easy rider at 02/11/2023 – 10:10
Well not unfair in that they paying the higher rate tax too. Before this even got introduced.