The Baffled Innkeeper

The Baffled Innkeeper

12:10 PM, 8th September 2015, About 7 years ago 5

Text Size

The Baffled Innkeeper

I had a very interesting discussion with a man last weekend who describes himself as an Innkeeper.

His establishment (three of them as he’s moderately successful) all sell beer, wines and spirtis as well as providing some letting accommodation. Therefore, he is ‘landlord’, albeit a different kind.

He thought the restrictions on finance cost relief were being unfairly applied to him. He is a sole trader, hence an individual landlord.

He couldn’t understand why his business was being singled out to pay more tax than the care home next door, or indeed any other business which doesn’t trade as a limited company.

Needless to say, he was very relieved when I explained to him that he was not affected by the proposed tax change and that it was only being applied to Buy-to-Let landlords. He was still baffled at why just one business sector was being singled out though, and said he had quite a few friends who invested into Buy-to-Let and that he suspects they are not aware of the Governments intentions.

Thankfully he had already signed the petition before I corrected his understanding 😀

You will find the rest of this story in the comments section below this article.

Budget 2015 - Landlords Reactions

The concern is ….. 

Budget proposals to “restrict finance cost relief to individual landlords”Summer Budget 2015 - Landlords Reactions

A Q&A sheet explaining the problem and the likely unintended consequences associated with George Osborne’s proposals can be downloaded here. Please feel free to copy, print, distribute.

To calculate the impact of this policy on your personal finances download this spreadsheet


A petition has been started – see >>>

Would you be prepared to invest just 15 minutes a day to campaign against the Budget proposals to restrict finance cost relief for private landlords?

Join The Landlord Tax Levy Campaign Group

YOUR Money, YOUR future, YOUR choice.

Related articles – LINK

Editors Note: Due to the overwhelming support and popularity of this article we must apologise that Property118 is physically unable to respond to all direct emails and telephone calls. We would be most grateful if you can comment via the thread below and the team of readers working with us will help pick up on all points 🙂

Share This Article


Mark Alexander - Founder of Property118

13:02 PM, 8th September 2015, About 7 years ago

The above isn't the full story.

Before I could get a word in edgeways the Innkeeper began telling me about his plans to close down his establishments and turn them into blocks of flats.

Once he understood the consequences of that he backtracked very quickly.

Perhaps I should have said nothing? At the very least he would have been contributing towards the solution to the housing crisis. Furthermore, he could never be accused of robbing First Time Buyers of opportunities to own their own home either!

Dr Rosalind Beck

13:35 PM, 8th September 2015, About 7 years ago

Reply to the comment left by "Mark Alexander" at "08/09/2015 - 13:02":

Yes, Mark - like the man profiled in the Telegraph article, who renovated a decrepit old hotel with squatters in it. No-one can say that he deprived owner-occupiers. However, some of the commentators below the Telegraph article tried to claim that what he had done was, in fact, immoral - by renting out the homes after he had created them because he SHOULD have sold them.
According to these people, it is okay to make profit by building and selling, but not building and renting out. They see letting a property as immoral in itself if done by a private landlord. I think they think it's okay if the council or a housing association does it... Even though, in some cases - perhaps in millions of cases even - the provision of private housing could be cheaper for the taxpayer than the social provision. I use the example of houses I rent out for £300 to £350 per month, with lots of costs - bad tenant behaviour is fairly frequent including non-payment of rent and damage to the houses, voids which follow this, the expense of court cases, and the meeting of Government regulations - annual gas safety certs (why can't they be every 2 years, for instance? Owner-occupiers don't bother to get them done - I don't in my own home). As I also pay tax to the Government if I make any profit on these houses (but I often subsidise them), I suspect this is a good deal for the Government. The idea that they will now want me to count the mortgage interest I pay to house these tenants as 'income' is to add insult to injury.

Neil Patterson

14:13 PM, 8th September 2015, About 7 years ago

Hi Mark

I have an idea to share with your baffled Innkeeper.

I am going to suggest to him that he converts his establishment into B&Bs and enters into a contract with the homeless unit of his local council offices in order to house all of the dislodged tenants resulting from this ridiculous tax change.

This business model will be exempt from the restrictions on finance cost relief on individual landlords too, just like it is for all other business sectors and trading styles. Better still, demand for the B&B services could provide looks set to rise significantly.

Telling his this seems like a good way to earn myself a free beer too. Now where can I find him please?

Mick Roberts

7:30 AM, 9th September 2015, About 7 years ago

Ha ha brilliant. Funny side-take which develops into serious note.

But yes, you wouldn't believe it, would you. You couldn't make it up, that's why it is so unbelievable.

Jerry Jones

10:46 AM, 9th September 2015, About 7 years ago

Reply to the comment left by "Neil Patterson" at "08/09/2015 - 14:13":

That's a good one to use when I meet my MP, for Weston-Super-Mare. Many of his voters run B&Bs and many are landlords of permanent homes.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now