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At present I am preparing a couple of properties to rent again
And I have noticed that the local council are removing any exemption for Council Tax t
We used to get six months and it was changed to one month now we get no exemption ???
My question this morning is at what rate of Income tax is BTL not worth doing ??????
I have worked out that If I did nothing about S24 my income tax rate on profits would be close to 75% and that is working on low interest rates
Investing Via a Company is a little better my rate of income tax on profits would be around 55%
But do we think of the indirect taxes we pay VAT ??? If you spend say 25k a year on repairs you are giving HMRC 20% £5000
We all know Mr Hammond has an eye on Companies he regards some of them as a Tax dodge ???
Are we getting to a point where Taxation will take so much from us and BTL doesn't become viable
Is this really what the Govt wants
BTL doesn't have the tax brakes any other trading business has and never did have but all the new taxation really takes the edge of BTL
At what point would you stop being a Landlord 60% 75% 99%
Of course I am talking here to Large Leveraged Landlords in general but even as a small landlord with say one property taxation is going to hit Council Tax VAT Income Tax and then CGT if your going to sell
Is our sector becoming nothing more than a cash cow for the govt and we are being lead to slaughter
Think of how much money is tied up in property If Landlords are forced to sell Think how much money the Govt could make
it would be billions on profits made over the past 25 years and more
Mr Hammond may well kill the golden goose for the sake of a quick dinner and solve a lot of his Budget problems
Learn Change and Adapt ?????
Which Local Authority is that ? Newcastle ?
http://www.LGFA92.co.uk council tax consultants.Posting as @CouncilTaxGuy on TwitterWhy not look at our blog at http://www.lgfa92.co.uk/blogAny posts are my own opinion on legislation and may vary from your local authorities !
North Tyneside and Newcastle City
Going on my figs from 2016/17 I have paid £500 on void properties
If I have the same voids in 2018/19 it would have cost me over £1000
I'm not surprised if Newcastle are reducing or scrapping the 100% for a month (it's not been mentioned to me by any of my contacts yet) - I saw the reduction from 6 month exemption etc down to the 1 month discount during the period I was working there.North Tyneside have always teetered on the edge with money so I'm also surprised with them taking so long.Craig
Can I ask you a question please
I have a city centre flat which had a water escape and the Insurance company are replacing all floors and some walls
so I could not rent the property since Dec
I am paying full council tax I did ask the council if there was an exemption due to it being inhabitable but I was told I have to pay full Council tax
Its seems unfair to me is this the case
Class A exemptions were replaced with Class D discounts at the same time the Class C was also removed and changed to a discount.
Unless the works rendered were to make it habitable then they'll not grant it as it doesn't then meet the criteria. Even If it did meet the criteria then Newcastle can (and do) award a 0% discount on these properties. If the property was unfurnished then you could try and push for a Class C discount instead.The definition for Class D is
The class of dwellings described in this regulation ("Class D") comprises every chargeable dwelling in England--
(a) which satisfies the requirement set out in paragraph (b) unless it has been such a dwelling for a continuous period of twelve months or more ending immediately before the day in question;(b) the requirement referred to in paragraph (a) is that the dwelling is vacant and--(i) requires or is undergoing major repair work to render it habitable, or(ii) is undergoing structural alteration; or(iii) has undergone major repair work to render it habitable, if less than six months have elapsed since the date on which the alteration was substantially completed and the dwelling has continuously remained vacant since that date;
© for the purposes of paragraph (b) above "major repair work" includes structural repair work.
I did get on one month when it became void and un furnished in Oct then we had the water escape and the Insurance company has been working there since Dec and they are still not finished
everything had to come out due to the leak Showroom Kitchen Dressing room and Living room
its a total rebuild inside the fun of being a landlord
That it was already unfurnished/unoccupied at the time and already had the 1month Class C answered a question I had - where the criteria for both a Class C or a Class D could be met (not applicable in your case though) the council were pushing staff to apply the Class D rather the then Class C, for obvious reasons. I did raise it as an issue in that if someone applied for the Class C and they qualified for then I'd carry on awarding it instead of the Class D regardless.Craig
We have had no exemption for some time, there has been talk of increasing the rate to 150% for empty properties.
Most local authorities in England already apply the 50% premium (those that don't will at some point start) - they can do where the property has been unoccupied and unfurnished for a period of 2 years or longer.In Scotland and Wales the premium can be 100%.
I do think that is a possibility too