The Budget (and B2L).
Discussion
Don't think it will, the cuts to benefits are likely to do enough damage to the btl sector as it is.
Loss of tax relief/housing benefit cuts/benefits cap would probably force a fire sale if they were all implemented in the budget at once, some landlords are already on slim pickings as it is.
Loss of tax relief/housing benefit cuts/benefits cap would probably force a fire sale if they were all implemented in the budget at once, some landlords are already on slim pickings as it is.
walm said:
First Tory budget in 19 years and you think they will do something to cool the housing market and crush the entire house-builder, real-estate business model?
I guess stranger things have happened.
If they do it won't be intentional as they have ramped it up so much with their policies, htb, fls, rtb, etc I guess stranger things have happened.
To add - everyone always thinks of evil slum landlords or wealthy upper-middle class B2Lers and seems to forget that a HUGE amount of capital is tied up in regular commercial property which is leveraged and takes advantage of the interest tax shield as a considerable part of the return on investment.
In fact, the interest shield is used by ANY business with debt.
I guess you could make some special rule for B2Lers but it would seem odd to single them out vs. say Vodafone or BT or BP or Sainsburys etc... all of whom have debt that they pay interest on and gives them a tax shield.
In fact, the interest shield is used by ANY business with debt.
I guess you could make some special rule for B2Lers but it would seem odd to single them out vs. say Vodafone or BT or BP or Sainsburys etc... all of whom have debt that they pay interest on and gives them a tax shield.
walm said:
To add - everyone always thinks of evil slum landlords or wealthy upper-middle class B2Lers and seems to forget that a HUGE amount of capital is tied up in regular commercial property which is leveraged and takes advantage of the interest tax shield as a considerable part of the return on investment.
In fact, the interest shield is used by ANY business with debt.
I guess you could make some special rule for B2Lers but it would seem odd to single them out vs. say Vodafone or BT or BP or Sainsburys etc... all of whom have debt that they pay interest on and gives them a tax shield.
Agreed. I don't get why people thing one particular type of landlord should be subject to different to tax rules than another, or indeed any other business.In fact, the interest shield is used by ANY business with debt.
I guess you could make some special rule for B2Lers but it would seem odd to single them out vs. say Vodafone or BT or BP or Sainsburys etc... all of whom have debt that they pay interest on and gives them a tax shield.
Applying those rules would kill most large property businesses. Wanting to just apply punitive rules to smaller landlord businesses is like applying harsher tax rules to small shops and businesses but exempting Tesco's etc.
Ginge R said:
Long suspected - soon to materialise? Will there be a cut in relief on interest payments for B2L landlords?
Spot on prediction - will be limited to basic rate tax relief only - with the change being spread over four years. That will make tax calculations a little tricky."In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings."
walm said:
Lucky I don't have to bet on these things for a living 
So basic rate only - not sure I follow the math on how that works...
Either way - that is going to make BTL a lot less attractive.
Regarding the maths at the moment anyone can deduct the interest wether it be me with one BTL or a billionaire who owns half of London. Now I can still deduct it but that billionaire can't. So basic rate only - not sure I follow the math on how that works...
Either way - that is going to make BTL a lot less attractive.
jdw1234 said:
"In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings."
This, clearly aimed at slum landlords and has to be good for tenants who want to see a quality standard of home and maintenance delivered. Either way, it'll mean lower profits.BoRED S2upid said:
walm said:
Lucky I don't have to bet on these things for a living
So basic rate only - not sure I follow the math on how that works...
Either way - that is going to make BTL a lot less attractive.
Regarding the maths at the moment anyone can deduct the interest wether it be me with one BTL or a billionaire who owns half of London. Now I can still deduct it but that billionaire can't. So basic rate only - not sure I follow the math on how that works...
Either way - that is going to make BTL a lot less attractive.
Ginge R said:
toohangry said:
I take it back!
More LTD company ownerships?
For the bigger operator, undoubtably. It will allow income to be used for pension contributions too, will make it better for spouses, retirement and generational planning. More LTD company ownerships?
Gassing Station | Finance | Top of Page | What's New | My Stuff