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Not misinformation just conjecture at the moment.
Nobody knows what is to occur.
Best to wait for the Govt consultation outcome on the RARA.
Then we'll all know exactly what the new regs will be.
It is pointless trying to second -guess things.
I'm sure things will be tightened up and rightly so as currently the system can easily be gamed.
Debate is healthy
i have met a number of landlords who did not understand s24 until I educated them
Most landlords don’t read PT
thr ones here are in Gemara at informed
a few months ago I said i was leavening PT because of your sort of opinion
i was shocked to find I had support and I was asked to stay
I have been in this game since 1982 and my busses is large than most
I have a large build to rent development in progress as I blogg here
i have experience and I fully understand what the govt has in mind for our sector
there is a lot of burying one head in the sand in this sector in my opinion
this attetude in the PRS
if you don’t like what I write that’s fine by me but believe me other das to what I write
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
May I suggest this RARR discussion be diverged to here.
Coming soon Investorsk8.com
Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs.
I would say it is more logical to target the Holiday Letting tax 'loopholes'.
Interesting article:Autumn Budget: What’s in store for BTL landlords?Changes to limited company taxation of buy to lets?
The Section 24 changes to mortgage interest tax relief have had a profound impact on parts of the buy-to-let industry, with many landlords deciding, rightly or wrongly, that it will be more tax advantageous for them to incorporate their businesses.
Firstly, anyone thinking of making this change should consult a tax expert first, as circumstances vary from individual to individual.
From a government perspective, Section 24 is in effect an attempt to reduce landlord tax relief on mortgage interest payments, meaning the Treasury has more funding from buy-to-let.
However, the taxation of limited companies is different and whilst it is questionable whether many landlords are better off by incorporating, many have taken this step and the limited company element of the buy to let market, has grown both in the number of applications and products available.
So-called ‘tax loops’ which deny the Treasury finances, are often closed down, so it might not be beyond the realms of possibility, that the Government changes the taxation of limited company buy to let.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Treasury faces a £1billion stamp duty black hole amid fears tax crackdown on homeowners has backfiredThe Treasury is facing a £1billion drop in stamp duty from property sales this year – sparking fears a tax crackdown on homeowners has backfired spectacularly.
Stamp duty charges on high-end homes were hiked sharply by former chancellor George Osborne four years ago in a bid to boost the tax take. He also imposed a 3 per cent surcharge on second homes to discourage landlords.
But it is feared the changes have clogged up the property market at the top end because people do not want to buy expensive homes due to the massive tax bills.Full/source article
This is all down to what is known as the Laffer Curve. When the whole tax change was originally muted all those years ago I posted many discussions about this principle, of tax being raised to a level that actually resulted in a reduced tax take.
Sometimes charging less raises more. That being said, perhaps this was never about raising more tax, I think their real intention was more about curtailing the market, which is essentially what has happened.
Landlord with 25 years’ experience in the property market and a specialist in tenant referencing, ID and credit screening. Creator of identity, credit and anti-money laundering system ValidID.co.uk
I have to agree with you stamp duty has been used to stop second home purchase
it was never there as a tax raising tool
it looks as if it’s working I can see it going up in the budget not being removed
One thing that may be an interest to many landlords with leasehold units. That we may expect to see in the Budget would be further information on the Ban on Ground Rent.
There has been a few proposals, first Sajid Javid said it would be a total ban. Then another commenter said it would be capped at £10.
_________________________________________________________________________The above post is not financial advice, its often me rambling - passing time on a coffee break.If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance._________________________________________________________________________
To me this just comes across as a thick thing to do, given what has happened to the London market.
Is there any marginal benefit at all, or is this just more expensive virtue signalling?