Treasury response to Section 24 report by Dr Rosalind Beck

Treasury response to Section 24 report by Dr Rosalind Beck

15:34 PM, 17th November 2016, About 5 years ago 138

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Below is the response from HM Treasury to the comprehensive report written by Dr Rosalind Beck on Section 24 of the Finance (No. 2) Act 2015 “the unjust legislation that will make the UK housing crisis much worse.”HM Treasury

Click Here to Download the full report by Dr Beck

Please leave any (polite) comments you would like the Treasury to take on board and we will inform the HM Treasury that real landlords’ views of Section 24 can be found here.

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Comments

by Richard Mann

9:17 AM, 18th November 2016, About 5 years ago

Reply to the comment left by "NW Landlord" at "18/11/2016 - 09:11":

...and why is that I feel that once we are herded into this arrangement that another Tax will jump out at you just around the corner?

by Gary Nock

9:18 AM, 18th November 2016, About 5 years ago

I have had a limited company dormant for a few months now just waiting to see what happens with the autumn statement. If this stupid tax is not repealed I will buy my next properties through it. I will ensure that the company will make no profit or very little, so that the tax payable is virtually nil. So Hammond you will lose out because I will then use the limited company to charge myself for letting my own personal properties. So even less personal tax. All perfectly legal and above board.

by NW Landlord

9:21 AM, 18th November 2016, About 5 years ago

That's the way u have to think mate ur spot on always ways to adapt

by Gromit

9:27 AM, 18th November 2016, About 5 years ago

MPs claim that they are honourable (they even called themselves "Right Honourable").

So how can an "honourable " person in a position of considerable influence with the Government just sit on thier hands and watch this train crash happen? How many will be able to hold their head up in public and say "I was aware this was going to happen and I DID NOTHING"?

Perhaps there is a misuse of the word "honourable"!

Sorry they are doing something they're an overpaid messenger boy/girl for the Treasury.

by David Price

9:41 AM, 18th November 2016, About 5 years ago

Reply to the comment left by "Gary Nock" at "18/11/2016 - 09:18":

I have been told that HMRC will stamp on this unless you manage for a large proportion of unconnected parties in addition to your own portfolio. No idea if that is true but it seems well within the spirit of HMRC taxing the hell out of individuals.

by Dr Rosalind Beck

9:42 AM, 18th November 2016, About 5 years ago

Theresa May/Philip Hammond have an opportunity in the Autumn Statement to bring back some sanity and decency into politics by reversing this. May is talking the talk about a society working for everyone and about re-prioritising the economy for the benefit of those 'just managing' and/or the low-paid. She knows that Brexit and the Trump victory were fed by an alienation with politics and a contempt for politicians and their motives and suspect actions in many spheres. Well, the low-paid may feel 'left behind' and 'got at', but as landlords we feel we have been viciously attacked by the Conservative Government.

In response to s24 I increased many of my rents last November. I will now further increase them to tie in with the initiation of s24 in April 17. Once again, I will attach a letter explaining the 'lunatic tax' based on costs and not on profit and how the most well-respected independent bodies in the country have called it 'absurd,' 'idiotic,' and 'not fair, reasonable or sustainable.'

I believe that gradually tenants will become more aware of this tax as their rents rise and as some lose their homes and that they will also start to get their voice heard. Hopefully, they will persuade Shelter and the Labour Party to move away from their blind anti-landlord stance to finally join us in realising that an a fiscal attack on landlords is also a fiscal attack on tenants.

It would be especially helpful here if landlords could outline some of their personal situations - particularly portfolio landlords who face massive hikes in effective tax rates. The Treasury response said that these were rare and so it was implied that the case studies in my report were not typical. They offered no evidence for this assertion. We can, however, offer evidence.

by NW Landlord

9:49 AM, 18th November 2016, About 5 years ago

Hi David they can't stamp on that it is perfectly reasonable for an individual to invoice a company for services not just management but consultancy and so on there's going to be so many landlords re structuring HMRC will not know which way to turn all unjust I really don't think this will actually raise anymore tax to be honest as landlords who sleep walk into this will not be able to foot the costs

by David Price

9:59 AM, 18th November 2016, About 5 years ago

Reply to the comment left by "NW Landlord" at "18/11/2016 - 09:49":

Yes I agree, perfectly reasonable, BUT HMRC could see it as tax evasion, at least so I was told for I do not have any personal experience of this situation. However I do have a limited company which manages all my property and because of the advice I was given it also manages property for others. So far there has been no challenge from HMRC.

by NW Landlord

10:01 AM, 18th November 2016, About 5 years ago

It's far from tax evasion it's a bill for services won't be loosing any sleep over that

by Richard Mann

10:05 AM, 18th November 2016, About 5 years ago

Reply to the comment left by "David Price" at "18/11/2016 - 09:41":

...this is exactly what I'm talking about ...herded and then cornered then another ruling to confiscate your earnings...


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