Autumn Statement 2015

[Welshbeef]

Bluebarge said:

Welshbeef said:

If you own one already it doesn't apply they don't retrospectively tax you stamp duty on houses you have bought in the past only future purchases post 1/4/16.

But it will affect the sale price/appetite for buying. A surprisingly Socialist policy for the Conservatives which will affect pension pots (again).

So will impact every home owner possibly pushing some into negative equity due to decreasing market values?

[Rovinghawk]

GT03ROB said:

Is that in addition to rent increase for the other tax changes...

Landlords are all scummy millionaires leeching off 'hard-working families' so it's fair enough to penalise them.

There should be laws to prevent them passing on additional expenses. In fact, they should be taxed into extinction so that those who haven't taken the risk & effort can have cheaper properties.

(Or something like that.) As said, it's surprisingly socialist.

[JagLover]

Welshbeef said:

So will impact every home owner possibly pushing some into negative equity due to decreasing market values?

I will believe "decreasing market values" when I see it. This is just taking some steam out of the biggest house price bubble in our history.

[JagLover]

Rovinghawk said:

Landlords are all scummy millionaires leeching off 'hard-working families' so it's fair enough to penalise them.

There should be laws to prevent them passing on additional expenses. In fact, they should be taxed into extinction so that those who haven't taken the risk & effort can have cheaper properties.

(Or something like that.) As said, it's surprisingly socialist.

A home owning democracy is a key conservative principle.

From an economic perspective as well nothing seems less productive than the vast amounts of debt taken on to sell non-descript properties to one another at ever larger cost.

[Eric Mc]

Key points as far as I'm concerned, from the official document -



Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties, such as buy to let properties and second homes, with effect from 1 April 2016. The higher rates will be 3 percentage points above the current SDLT rates. The government will use some of the additional tax collected to provide £60 million for communities in England where the impact of second homes is particularly acute. The tax receipts will help towards doubling the affordable housing budget. This will help first time buyers.


By 2020, require most businesses, self-employed people and landlords to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account. HMRC will ensure the availability of free apps and software that link securely to HMRC systems and provide support to those who need help using digital technology. This will not apply to individuals in employment or pensioners, unless they have secondary incomes of more than £10,000 per year from self-employment or property. The government will consult on the details in 2016
consult on options to simplify the payment of taxes, including whether to align payment dates and bring them closer to the point when profits arise, so that taxpayers make a single regular payment that covers all their tax affairs

Capital Gains Tax (CGT) due on residential property is currently paid between 10 and 22 months after a disposal is made. This is out of step with the position for other taxpayers, such as those paying income tax through the Pay As You Earn (PAYE) system. This delay can also cause problems where a taxpayer forgets to pay, or where they no longer have enough of the proceeds from the disposal to cover the tax charge. To address this the Spending Review and Autumn Statement introduces a requirement for the capital gains tax due to be paid within 30 days of completion of any disposal of residential property. This requirement will be introduced from April 2019 to ensure that HMRC’s digital systems are ready to provide support, making paying this tax simpler and quicker for taxpayers.

Employment intermediaries and tax relief for travel and subsistence – As confirmed at Summer Budget 2015, the government will legislate to restrict tax relief for travel and subsistence expenses for workers engaged through an employment intermediary, such as an umbrella company or a personal service company. Following consultation, relief will be restricted for individuals working through personal service companies where the intermediaries legislation applies. This change will take effect from 6 April 2016.


Salary sacrifice – The government remains concerned about the growth of salary sacrifice arrangements and is considering what action, if any, is necessary. The government will gather further evidence, including from employers, on salary sacrifice arrangements to inform its approach.

Disguised remuneration – The government intends to take action against those who have used or continue to use disguised remuneration schemes and who have not yet paid their fair share of tax. The government will also consider legislating in a future Finance Bill to close down any further new schemes intended to avoid tax on earned income, where necessary, with effect from 25 November 2015.

[anonymous-user]

Interesting if there's been a bit of a power battle between Osborne and May given there'll apparently be 'real term increases' to the police budgets.

Rovinghawk said:

Landlords are all scummy millionaires leeching off 'hard-working families' so it's fair enough to penalise them.

There should be laws to prevent them passing on additional expenses. In fact, they should be taxed into extinction so that those who haven't taken the risk & effort can have cheaper properties.

(Or something like that.) As said, it's surprisingly socialist.

Is there no housing problem in the UK over ownership that needs addressing?

There are lots of landlords with no concept of risk, exposure and 'leverage' when it has come to borrowing and amounting masses of debt. It's similar thinking to those involved in banking pre-2008. If they were more concerned with a balance between equity and risk, rather than maximising exposure, there'd be fewer worried landlords.

Perhaps a few will get a reality check as to how the 'financial' markets work in the real world.

[turbobloke]

La Liga said:

police budget

Osborne pledged real terms increases to police funding - after speculation it would be cut - the man has done the right thing and played a blinder.

Linked to external threats not internal squabbles?

[Eric Mc]

Another interesting snippet -

Simple assessment – The government will publish draft legislation that will enable a new, simpler process for paying tax. This will be used for taxpayers in self-assessment who have simple tax affairs where HMRC already holds all the data it needs to calculate the tax liability, and where existing payment processes are not available. Taxpayers will be sent a calculation which will be a legally enforceable demand for payment, and taxpayers will be able to challenge and appeal these calculations. This process will come into effect in the 2016-17 tax year. (Finance Bill 2016)

Looks like a return of the old fashioned "Tax Assessment .

Tax Assessments were abolished when Self Assessment was introduced 20 years ago.

[Bluebarge]

La Liga said:

s there no housing problem in the UK over ownership that needs addressing?

There is a housing problem caused by supply - we simply don't build enough new homes and haven't done so for many years. This is just a tax on an immobile object that is hard to move or hide (therefore ideal to tax). It will make almost no difference to FTBs but will affect pension planning.

[FiF]

Welshbeef said:

Smollet said:

Welshbeef said:

Pensions now.

New single tier up to £155.65 per week or £8,093.80 per year

Provided you've pain into it long enough. It should be based on how long you've paid or how much you've paid in. I'm in the situation where I paid a lot in but not for enough years so I won't even qualify for that figure. I'll get about £112 pw.

So £5.8k but you didn't work long enough to qualify. How many years out of interest? None the less £485 for an individual from 65yo for life add in your other half plus any private pensions no mortgage no need for 2 cars and the ability to go on holidays out of peak season means a good lifestyle.

See Smollet has already answered for himself, but I've got 39 qualifying years, you need 35 for a full pension, but based on the latest calculation my pension would be reduced by just over 82gbp per calendar week due to contracted out for most of that time.

Mrs has 36 qualifying years, based on much much lower earnings, and so much lower contributions and her pension will be reduced by only 20 gbp per week. Work that one out to make sense of it. Even with the guarantee that "people won't lose out" her pension will still be higher than mine.

Note, not complaining as with private and occupational pensions we're definitely all OK, even before OAP kicks in, hers not for some years yet, but the reform is bizarre in the way it works.

[anonymous-user]

turbobloke said:

La Liga said:

police budget

Osborne pledged real terms increases to police funding - after speculation it would be cut - the man has done the right thing and played a blinder.

Linked to external threats not internal squabbles?

I don't think recent events would have done any harm, but that feels a little last-minute. They could have still managed the terrorism threat and probably the publics' need to see 'something being done' by the proposed increase to defence spending (or which I believe some is to go to police counter-terrorism) / ring-fencing police counter-terrorism funding etc.

I think it's more the case it is getting to the point where major fundamental changes would need to occur to the police in terms of what they do. True, numbers are now in line with what we had 15 years ago, but the world has moved on in terms of policing demand due, primarily, down to technological advances. Whether that's mobile phone usage or social media. I don't think this government want to be the ones who potentially redefine the police / public relationship because there are serious things that the police would need to stop doing. They'd essentially need to strip down to responding to emergencies and processing people who have been arrested for the most part.

What I do hope is that the experiences senior managers in the police (and future ones) of the past 5 years+ is that they still look for efficiencies and question the necessity of spending and decisions with due financial consideration. The police have also learnt to say 'no' to other organisations for what I can see is the first time. NHS reporting someone (who has capacity and are in a position to make an informed choice) has left the hospital prior to treatment so if that person ends up dead they can say, "we told the police". That sort of time-wasting rubbish is being eradicated and I hope it continues to be done so even with this financial relief.

I hope the positives of the experience aren't forgotten.

Bluebarge said:

There is a housing problem caused by supply - we simply don't build enough new homes and haven't done so for many years. This is just a tax on an immobile object that is hard to move or hide (therefore ideal to tax). It will make almost no difference to FTBs but will affect pension planning.

When you have many people owning multiple properties (which I don't object to, it's a free market up to a point), then that also reduces the supply. The regulation on the banks means they won't lend as freely (sensible in a lot of respects) so people looking to buy require greater capital in order to do so. It can be a catch-22 for a lot of people whom struggle to do this, partly because rent yields are so high due to the shortage.

We do build too few, but we need to acknowledge the other factors.

[worsy]

Eric Mc said:

Key points as far as I'm concerned, from the official document -



Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties, such as buy to let properties and second homes, with effect from 1 April 2016. The higher rates will be 3 percentage points above the current SDLT rates. The government will use some of the additional tax collected to provide £60 million for communities in England where the impact of second homes is particularly acute. The tax receipts will help towards doubling the affordable housing budget. This will help first time buyers.

Sdlt doesn't apply in Scotland.
Sdlt threshold is 125k rather than legislated as 0-125k @ 0% so suggests lower value homes are exempt from this?

[audidoody]

Welshbeef said:

Only for new ones bought and only from April 2016 onwards so buy more now to save £15k+++

Am I missing something here?

Buy a property as a main residence paying normal stamp duty. Live in if for six months. Rent out existing property. Move back in six months later renting out the second pad.

[italianjob1275]

numtumfutunch said:

Still dont see why some people buying houses should be subsidised by the tax payer

So when we're old and grey and suffering from Alzheimer's the government can make us sell our houses to pay for our care.

And it won't cost them a penny.

[Elroy Blue]

turbobloke said:

Osborne pledged real terms increases to police funding - after speculation it would be cut - the man has done the right thing and played a blinder.

Linked to external threats not internal squabbles?

It's a shame it took the deaths of over 100 people to make them think again. It would have been Political suicide to go through with the planned cuts.

He's also pulled a sly one and increased the burden on Council tax payers, who will now see a tax increase in the Police and Social care precept. Osbourne can now stand back and say 'nothing to do with me Guv'

[anonymous-user]

audidoody said:

Welshbeef said:

Only for new ones bought and only from April 2016 onwards so buy more now to save £15k+++

Am I missing something here?

Buy a property as a main residence paying normal stamp duty. Live in if for six months. Rent out existing property. Move back in six months later renting out the second pad.

First main res - normal stamp.
All subsequent property - extra 3%
1st and all subsequent BTLs - extra 3%

So basically the only property that will attract normal SDT will be your first main residence.

[Rovinghawk]

La Liga said:

hen you have many people owning multiple properties (which I don't object to, it's a free market up to a point), then that also reduces the supply.

Although it uses up the supply of houses to own, the supply of houses to live in is unaltered.

Provided folks have somewhere to live, whether they pay rent or mortgage is not desperately important. Look at ownership levels in neighbouring countries.

The level of other obligations on landlords is noteworthy- a consequence of all these measures including today's is that rents will rise & those renting will be unhappy.

[turbobloke]

Elroy Blue said:

turbobloke said:

Osborne pledged real terms increases to police funding - after speculation it would be cut - the man has done the right thing and played a blinder.

Linked to external threats not internal squabbles?

It's a shame it took the deaths of over 100 people to make them think again.

Out of interest was Osborne's supposed initial approach a matter of pure speculation or did he actually say he was going to cut police budgets in real terms? I've read the speculation but not seen a direct quote, it may exist of course.

You sound almost disappointed that the spend is going to increase.

Elroy Blue said:

It would have been Political suicide to go through with the planned cuts.

As above, planned or speculated about?

Elroy Blue said:

He's also pulled a sly one and increased the burden on Council tax payers, who will now see a tax increase in the Police and Social care precept. Osbourne can now stand back and say 'nothing to do with me Guv'

I read that LAs with responsibility for social care will be allowed to levy a new precept of up to 2% on Council Tax.

[Eric Mc]

audidoody said:

Welshbeef said:

Only for new ones bought and only from April 2016 onwards so buy more now to save £15k+++

Am I missing something here?

Buy a property as a main residence paying normal stamp duty. Live in if for six months. Rent out existing property. Move back in six months later renting out the second pad.

Nope - there will have to be all sorts of detailed explanations of what constitutes a genuine "purchase with intent to buy as a buy to let" to make this work properly. There are many, many examples where people rent out what was once their main home, for example.

So, if you buy a house intending to live in it some time in mid 2016 only to find you are being sent abroad by your employer - what happens if you decide to rent out your house whilst you are away. Will HMRC come after you for underpaid SDLT?
Indeed, the is additional SDLT is on "second homes" - so they don't need to be rented out to be liable.

I foresee detailed time limits as to how long you must own and live in a house before a back charge for SDLT cannot be pursued by HMRC.

It will get pretty messy.

[Welshbeef]

audidoody said:

Welshbeef said:

Only for new ones bought and only from April 2016 onwards so buy more now to save £15k+++

Am I missing something here?

Buy a property as a main residence paying normal stamp duty. Live in if for six months. Rent out existing property. Move back in six months later renting out the second pad.

Nope it's clear if you increase your property holding then you pay an additional 3% on the one your buying.

Actually that's a real fker so you say buy 2/3 bed houses as buy to let but then go for a 6 bed £2m pad then that pad gets stung with an additional 3% stamp duty hit.