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  • Tax

    What level of taxation would you pay?

    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

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    Learn Change and Adapt ?????

    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 ???


    Which Local Authority is that ? Newcastle ?

    Craig

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any 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


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    Learn Change and Adapt ?????

    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

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    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

    thanks DL

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    Learn Change and Adapt ?????

    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.

    Craig

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    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

    Thanks DL

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    Learn Change and Adapt ?????

    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

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    We have had no exemption for some time, there has been talk of increasing the rate to 150% for empty properties.

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    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%.

    Craig

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    http://www.LGFA92.co.uk council tax consultants.
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog


    Any posts are my own opinion on legislation and may vary from your local authorities !

    I do think that is a possibility too

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    Learn Change and Adapt ?????