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 Dr Rosalind Beck

17:12 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Peter David" at "18/11/2016 - 17:06":

Very eloquently put, Peter. The whole thing is a disgrace.

by Richard Mann

17:14 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Gary Dully" at "18/11/2016 - 16:59":

You get my vote

by Gromit

17:34 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Gary Dully" at "18/11/2016 - 16:59":

@ Gary

Spot on. The trick will be getting it in front of them.

It would be nice if a sympathetic national newspaper would publish it as an "open" letter.

by Gary Dully

17:38 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Barry Fitzpatrick" at "18/11/2016 - 17:34":

Feel free if you know anybody, to pass it on.

by Appalled Landlord

17:53 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Peter David" at "18/11/2016 - 10:14":

Hi Peter

I’m afraid you have underestimated the rent increases you will need. This is because you will pay tax on the increases as well.

To get an extra £24,000 net, your rents would have to increase by £40,000 - and by more than this if you are pushed into the additional rate band.

And this will leave you not a penny better off. Madness.

by Pete David

18:20 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Appalled Landlord" at "18/11/2016 - 17:53":

So instead of an arm and a leg it's two arms, both legs and half a torso. Oh for the days when it was just a pound of flesh. I'm beginning to appreciate america's second amendment...

by Mark Shine

19:16 PM, 18th November 2016, About 5 years ago

Ros. In her response to you, Michelle Ma writes:

‘Incorporated businesses will continue to receive relief at the corporate tax rate. However, the rate of relief is not more generous (currently 20%) than the rate of income tax relief once these changes are fully in place by 2020-21.’

Whilst the above is technically accurate, for a Treasury employee to still be using such blatant sophistry is extremely devious.

In your reply to her, you could ask her whether incorporated landlord businesses will be able to deduct 100% of finance costs when calculating their net profit in 2020/21? (YES/NO answer)

by Dr Rosalind Beck

20:19 PM, 18th November 2016, About 5 years ago

Reply to the comment left by "Mark Shine" at "18/11/2016 - 19:16":

Hi Mark. Unfortunately, I've already sent the letter. It will be published on 118 probably on Monday. I did go for the jugular though.

by Steve Wood

23:43 PM, 18th November 2016, About 5 years ago

The big difference and one (ltd) is a relief or allowable expense and the other a tax credit so the basis for the tax changes so dramatically. So it not a turnover tax but a completely new basis that then presents all these problems of absurd outcomes.

Ros, you continue to be a massive help with this. I know it will affect you considerably amongst others. I hope we get some sense from new chancellor rather then the standard nonsense.

by Steve Wood

23:45 PM, 18th November 2016, About 5 years ago

The big difference is that one (ltd) is a relief or allowable expense and the other a tax credit (not ltd) so the basis for the tax changes so dramatically. So it not a turnover tax but a completely new basis that then presents all these problems of absurd outcomes.

Ros, you continue to be a massive help with this. I know it will affect you considerably amongst others. I hope we get some sense from new chancellor rather then the standard nonsense.


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