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Landlords think they have it bad, what about car manufacturers and drivers ....
It’s a double whammy if you are a landlord and a car driver.
Have you looked at the tax increases and amount of tax on new cars?
Buy a new car costing over £40k and you have to pay an additional £310 road tax for the first five years, as an example, first year road tax of £1,240 followed by £450 for the first five years with the probability that will increase each year as well.
Then there is the tax on petrol, the congestion charge in London and now the London ultra low emission zone with a charge of £12.50 per day even if you live in London.
Whilst this post is a bit tongue in cheek please add any changes you can think of that has made it more difficult for car manufacturers and drivers. It might just make us think things are not so bad.
You would have to be mad to spend that sort of money on a car..........a depreciating asset...................until perhaps it reaches classic car status 25 years later!!??
For that sort of money you can invest in a BTL which should generate sufficient net income to pay for a PCP contract on at least one of these expensive cars.
I find it bizarre that anyone with financial sense would wish to invest so much into an expensive piece of depreciating metal!
Surely such capital could be made to work far harder?
It would be even better to use such funds to reduce debt if a S24 LL.
You are missing the point, the post is just to highlight that it’s not just BTL that is facing higher taxes and regulations. Imagine living in London with an older vehicle and being told that you have to pay the ultra low emission zone charge of £12.50 per day if you drive your car or go and buy a newer car.
The tax on petrol is around 60% of the pump price.
As I said it’s a bit tongue in cheek and not to be taken seriously.
and on the other hand some cars of age don't pay tax or have MOT,s in 2018
Learn Change and Adapt ?????
We are not alone with higher Taxation
every Share holder who has a dividend will pay more in tax
But we are different that we are being now taxed retrospectively
Can you imagine if a Car Manufacture being told for every car you sold three years ago we will charge you Tax
every business is allowed expenses and interest has always been deductible from profits
Just look how investors in there own names cant offset higher rate tax but a company can
Its not fair and its very underhanded in my opinion
yes tax me on profits that's fair and I have no issue with it
But this is the very reason I think that the onslaught on the PRS is not over
and any other investors who think different should look over there shoulder
We are the Morgan Car Co who are tiny are being taxed differently from the likes of Ford Corporation
If your going to tax a business it should be fair large or small in my eyes.
With the ultra low emission zone it is people living in London that have owned their cars for some time that will be most affected, imagine getting in your car and being told you must pay an additional £12.50 each day you drive it. Lucky you don’t have any tenants in London but may be Newcastle will like the idea.
I am quite sure every major city would love to have a congestion charge ? we have a toll road in Durham Now
we are all going to pay more tax I keep saying that
The UK needs money to pay for NHS ect ect
I don't imagine there is one single LL that considers that paying tax on PROFIT is a wrong.
Offsetting debt interest was clearly a recognised business methodology.
There are businesses that are loaded up with debt that only remain viable because of the ability to offset those interest costs against income.
Without such a facility there would be a total collapse in the economy amd a massive depression.
Debt funds the modern market economy.
It seems only mortgaged sole trader LL are not to be allowed to carry on business like any other business.
Which is why I will be evading as much tax as I can.
It simply cannot be right to tax LL on turnover.
If Govt had wanted to stop ANY LL buying with a mortgage it should have introduced MMR style controls preventing ANY LL from borrowing more than 50% LTV.
To those that would say LL would then obtain BTL loans outside the then regulated BTL sector I say rubbish!
It simply wouldn't happen.
The amount of funding outside the UK is simply not there to support all but a very tiny percentage of BTL mortgage requirements.
LTV is the key to controlling the BTL sector.
FTB are allowed 95% LTV.
This should be more than enough to compete with LL who can generally only achive 60% LTV
its totally unfair
But we have to look at why this is happening
I really believe they want the small landlord out of the game
I believe you are totally correct.
But Govt logic cannot seem to work out that tenants won't be converted into FTB.
It would be great if it was so easy.
Just as there is a need for social housing there is a need for private housing.
Govt can't seem to work this out.
They behave like children with no understanding of how housing works.
Presumably Govt has some experts but based on how they perform the Govt seems to comprise of economic illiterates.
Govt seems to try to formulate policy that will never work as it fails to recognise certain market realities.
I just don't get how thick Govt can be!?