Michael Gove, Section 24 and Mars bars?

Reply to the comment left by TheBiggerPicture at 02/11/2023 - 13:37
Well said The bigger picture.

There is a dearth of homes for rent across the country. Housing associations and local governments are financially stretched. It makes sense for wealthy people to invest in rented property to alleviate a chronic shortage. For the government to give a small tax incentive to private rental landlords just like they give to hoteliers to solve one of the housing problems.
When the interest on mortgages was 1% it was neither here nor there but with interest rates over 5% now it is an entirely different matter.
How many landlords will vote Tory at the next election?

Reply to the comment left by david porter at 02/11/2023 - 16:03
"How many landlords will vote Tory at the next election?"

A good question, I have been thinking about this; for the first time in a few decades I am thinking about not voting.

Labour will be worse than Con.

Property 118 need a separate Post on this topic.

I think part of the confusion with s24 tax is that you get interest relief at the lower tax rate. HMRC assured me that, a lower rate tax payer ( which I was ) would not see any difference in income. After a long conversation with them and several managers being consulted, I was told that I would in fact have no income! They admitted that they had been giving out incorrect information to many landlords ( the gross rent is classed as income before the basic allowance is deducted, so a large rental turnover pushes you into being a higher rate tax payer, regardless of profit level. Then tax relief is allowed at the lower level). This government seems committed to eliminating the small private rented sector, cheered on by the Labour Party, local authorities and housing activist groups.
I can sell up and take the money. My tenants are in big trouble.
Most cannot buy a house at any price due to their personal circumstances, and are struggling with rent now. How they will cope in retirement or with illness is a frightening prospect.
All of these parties with their fixed agendas are playing with the lives of the poorest and most disadvantaged tenants, and in the best spirit of propaganda, they are blaming a group who are not responsible and are not able to avoid this debacle.
No matter how frustrating this is for landlords, tenants will be the true victims of this.

Don't forget guys and girls, Gideon, sorry George does have his degree in Modern History so well qualified to be a chancellor. As an expert in Modern History he didn't learn much about historical economics and the many mess ups and causes of such. Nothing changes.

Reply to the comment left by AT at 02/11/2023 - 16:10
I too have thought about my vote. I'm thinking of spoiling it. If enough people spoiled their vote, perhaps the message would finally get through. (Although probably not - they're politicians after all)

Reply to the comment left by Matthew Jude at 02/11/2023 - 17:17
U say it well Matthew:
All of these parties with their fixed agendas are playing with the lives of the poorest and most disadvantaged tenants, and in the best spirit of propaganda, they are blaming a group who are not responsible and are not able to avoid this debacle.
No matter how frustrating this is for landlords, tenants will be the true victims of this.

And tenants vote for it cause it sounds good Slam the Landlord.

Just completed on the sale of one of my rental flats been purchased by an owner occupier so another rental property lost to the PRS.
Calculated my capital gains tax which is either 18% or 28% depending if basic or high rate tax payer. You have to state your estimated income when submitting your CGT return and making payment (within 60 days of completion).
Just prepared some draft accounts for the current tax year and my “true” net profit is going to be around £30k (all my income is from rentals). However my “false profit” due to inability to deduct mortgage interest is going to be around £53k causing me to be pushed into the 40% tax band by £3k. So I’m really a basic rate tax payer but my capital gains tax is 28% and not 18%.
So Section 24 is not only affecting my income tax banding it’s also affecting my CGT rate. I don’t think many people realise this. It’s an absolute scandal. One flat sold, an offer just accepted on another and two more just put on the market and likely to be lost to the PRS. Obviously this is what the Government want. It’s easy to think they’re just stupid but they’re not, nobody can be this stupid. Even when it’s pointed out to them they pretend they don’t understand it …… truth is they just don’t care.

Reply to the comment left by Grumpy Doug at 02/11/2023 - 09:15
@Grumpy Doug You are spot on. This is exactly the research that needs to be carried out in detail and in earnest by the “professional” bodies that allegedly represent the landlords of the PRS for the purposes of lobbying government. If the evidence is there in black and white it cannot be argued with.
What exactly are they doing about it, apart from buying shiny suits?
Best Wishes,
A Private Landlord providing homes for vulnerable families.

tax relief you say?
Any other business is taxed on profit yet G Moron Osbourne decided that costs should be taxed too.
This is self evident bias against those kindly willing to support all the regulatory work and accept all the risks.
It's reasonable to tax profits but this biased system is punishing the business owner directly and the tenant who ultimately pays for it indirectly.
What a moron: G.O.