Tax neutrality abandoned in Budget states Professor Philip Booth
Professor Philip Booth has spoken out against the Chancellor’s latest attack on landlords in the 16th March Budget.
This is his statement:
‘The 2016 Budget was not a good Budget for tax neutrality. Once again, the abandonment of this important principle was extended in an adverse way to buy-to-let landlords. Capital gains tax was – quite rightly – reduced, but not for this group. This essentially means that the government is deliberately biasing the tax system against investment in bricks and mortar – in other words against investment in shelter for those who must rent.’
Professor Philip Booth is Professor of Finance, Public Policy and Ethics at St. Mary’s University, Twickenham. At the Treasury Select Committee on the 2015 Summer Budget he stated that the tax grab against private landlords ‘didn’t make sense,’ later adding:
‘To put it quite bluntly, this is an elementary undergraduate public finance error that should not be made in the Treasury.’
At the same Treasury Select Committee, Paul Johnson, of the Institute of Fiscal Studies stated it was ‘plain wrong’ to prevent one business sector from offsetting the costs of producing taxable profit.
In the face of this seemingly relentless attack on landlords by George Osborne, we as landlords are no longer passively accepting our fate. Negotiations by major landlord bodies appear to have got nowhere, so legal action is imperative.
And since part of the legal case concerns the discriminatory nature of the Government’s actions against us as landlords, this latest outrageous exclusion of landlords and treatment of us as the only business not to benefit from the CGT reductions can surely only strengthen our case.
Professional qualifications of Professor Booth:
• Fellow of the Institute of Actuaries, 1991 onwards
• Fellow of the Royal Statistical Society, 1990 onwards
• Certificate of Finance and Investment of the Institute of Actuaries, 1989
• Honorary Member of the Society of Actuaries of Poland, 1997 onwards
• Fellow, Blackfriars Hall, University of Oxford, 2010-2011
• Member, the Mont Pelerin Society, 2007 onwards
Previous Experience:
• Editorial and Programme Director, Institute of Economic Affairs (1st September 2002 – present)
• Previously Professor of Insurance and Risk Management, Cass Business School and other positions within City University, 1988-2015
• Associate Dean, City University Business School 2001–2002
• Adviser on Financial Stability to the Bank of England 1998-2002
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Landlords in Bristol and Bath go local!Next Article
I have got stuck with an illegal loft conversion?
Comments: 359
12:38 PM, 21st March 2016, About 10 years ago
anywhere else it would be called discrimination and would therefore be unlawful
Member Since September 2016 - Comments: 2533 - Articles: 73
1:01 PM, 21st March 2016, About 10 years ago
Reply to the comment left by “D D” at “21/03/2016 – 12:38“:
Yes, and hopefully that is how it will be viewed by a judge in due course. We are no longer taking the constant attacks against us, sitting down, fortunately. Thanks to Chris and Steve, we are on the offensive!
Member Since June 2013 - Comments: 4 - Articles: 40
4:24 PM, 21st March 2016, About 10 years ago
Although capital gains tax was not reduced for buy-to-let landlords, all is not as bad as it would seem. Inflation is low, shares prices are falling, several investors like the simplicity of student accommodation investment because they have paid for their own children weekly rent throughout 3 years of university. Director AK says that “It has been really popular as a hands off investment generating 8% Net income per annum.”
Member Since June 2013 - Comments: 4 - Articles: 40
4:34 PM, 21st March 2016, About 10 years ago
Although it may seem like bad news for buy-to-let landlords, all is not lost. Inflation is low, shares prices are falling, several investors like the simplicity of student accommodation investment because they have paid for their own children weekly rent throughout 3 years of university. Director AK says of these investments; “they have been really popular as a hands off investment generating 8% net income per annum.”
Member Since September 2016 - Comments: 2533 - Articles: 73
6:27 PM, 21st March 2016, About 10 years ago
Reply to the comment left by “Arran Kerkvliet” at “21/03/2016 – 16:34“:
Please do not try and hijack my article with advertisements for over-priced institutional lets. If they are a ‘great investment’ for landlords with ‘brilliant returns’ that just means that the poor student is getting even more into debt. Not all students have rich mummies and daddies. The institutional student lets I have seen advertised in Cardiff cost more than 3 times what private landlords are charging. It’s a disgrace that these over-charging companies should be encouraged and incentivised by Government in the direction of gaining a monopoly in the market – all to the detriment of tenants. Hopefully a judge will recognise this as illegal ‘state aid’ to one section of the market and once C24 is abolished, the institutions will have to drop their rents significantly once they are no longer gifted this discriminatory advantage by the Government. They won’t look like such a good bet then.
Member Since November 2013 - Comments: 1130 - Articles: 2
10:22 AM, 23rd March 2016, About 10 years ago
Reply to the comment left by “Ros .” at “18/03/2016 – 16:54“:
I personally know of one such organisation which makes generous donations to the LABOUR party. One such donation was made last autumn, a few weeks after a loan of nearly £5k that I made to the CEO became due, which is still outstanding, despite threats of legal action.
This particular person is the sole shareholder of a large property company that owns or manages at least 500 rental properties in London alone.
So these are the kind of people who will provide affordable housing for the needy, as well as for other private renters, in future??
Member Since September 2013 - Comments: 3
2:14 PM, 23rd March 2016, About 10 years ago
Has anyone got a good template for the tenants rent increase please.
Member Since October 2015 - Comments: 148 - Articles: 1
3:07 PM, 23rd March 2016, About 10 years ago
Reply to the comment left by “Appalled Landlord” at “19/03/2016 – 15:06“:
Shocking.
Member Since January 2016 - Comments: 235
11:26 PM, 23rd March 2016, About 10 years ago
Reply to the comment left by “Stephen Newell” at “23/03/2016 – 14:14“:
Stephen
Try these !!
https://www.property118.com/clause-24-rent-increase-letter-tenants-template/83369/#comments