MSE News: Halifax: house prices up for third successive month

nollag2006

Thrugelmir wrote: »

There may be a rush in a few years time. As in simple terms capital gains tax could potentially have an impact, after 36 months has elapsed.

Anybody in this position should read "ir283 private residence relief"

This can be found at http://www.hmrc.gov.uk/pdfs/1999_00/helpsheets/ir283.pdf

Hmmm.. I don't think this is likely to be an issue.

If the property was originally the landlords PPR, they simply need to move back into it for a few months before selling it and declare it to be their PPR again thereby legitimately eliminating any CGT exposure. (As so many of our MPs have discovered !!)

If the landlord decides that they do not want to move back in, the other option is to take a small CGT charge. The revenue will assume that the first year and last three years of ownership of a property that was initially the landlord’s home will be exempt from CGT as it is deemed to be the landlords PPR.

So if a landlord, who rented their own home out during the recent downturn, wanted to sell five years after the initial purchase, then only 20% of the capital gain would be chargeable to CGT. And that is before their personal CGT allowance or the Rental Property CGT relief.

IveSeenTheLight

Thrugelmir wrote: »

A lot of professionals did exit the market at the last change of cgt. Its worth remembering that they had made sizable gains due to the market rise between 1999 and 2004 alone.

A similar problem arises for people who have owned their homes for many years and now STR. I have a friend who rents out her old home in Brighton that was bought in 1986. Its now worth £850k. The gain is based on the original purchase price. So she will progessively incur a larger and larger tax bill. Shes considering moving back in and letting her partners house for a couple of years. As much as she tried the house hasn't sold.

You believe a lot of professionals exitted the market prior to the tax change, but I don't recall a mass change in the percentage of BTL within mortgage lending data

Do you have a link highlighting the mass sway of BTL sellers due to the capital gains tax changes in April 2008? It could be good to compare this data against the UK overall.

mewbie_2

IveSeenTheLight wrote: »

You believe a lot of professionals exitted the market prior to the tax change, but I don't recall a mass change in the percentage of BTL within mortgage lending data

That's because 58% of them bought BTL properties with private mortgages, and rented out tax free.

IveSeenTheLight

mewbie wrote: »

That's because 58% of them bought BTL properties with private mortgages, and rented out tax free.

You just spouting sh!te again to try and be funny?

Be good to back up what you say with facts. No didn't think so :rolleyes:

Thrugelmir

IveSeenTheLight wrote: »

You believe a lot of professionals exitted the market prior to the tax change, but I don't recall a mass change in the percentage of BTL within mortgage lending data

Do you have a link highlighting the mass sway of BTL sellers due to the capital gains tax changes in April 2008? It could be good to compare this data against the UK overall.

BTL is a fairly recent event. Investors with capital have bought and sold property for years. Remember in 1999 there were only 30,000 commercial property loans for residential property by 2007 1.2 million.

By professionals I mean people with several millions in the market, that own block of flats not single units.

I assume you mean the end of the 2004/05 tax year in April 2005 not 2008.

mewbie_2

IveSeenTheLight wrote: »

You just spouting sh!te again to try and be funny?

Be good to back up what you say with facts. No didn't think so :rolleyes:

Blimey. The facts speak for themselves. I have graphs and stuff but can't be bothered to post them. I'll let the CML chief's words tell their own story...

"It is common knowledge that a large number, aprox. 58%, of BTL properties were acquired with liar loans and private mortgages."

IveSeenTheLight

Thrugelmir wrote: »

BTL is a fairly recent event. Investors with capital have bought and sold property for years. Remember in 1999 there were only 30,000 commercial property loans for residential property by 2007 1.2 million.

By professionals I mean people with several millions in the market, that own block of flats not single units.

I assume you mean the end of the 2004/05 tax year in April 2005 not 2008.

So the Investors you refer to sold to who'm, OO's, FTBers, BTL's

The taper relief was changed in April 2008, I didn't see a mass increase in OO's, BTL's or FTBers from when the budget was announced circa Oct 2007 - April 2008 due to investors all selling up due to the capital gains tax changes to 18% flat rate as opposed to taper relief

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4016313
"CGT rate
For 2008-09 and 2009-10 there is a single rate of Capital Gains Tax of 18 per cent for individuals, trustees and personal representatives on taxable gains. "

IveSeenTheLight

mewbie wrote: »

Blimey. The facts speak for themselves. I have graphs and stuff but can't be bothered to post them. I'll let the CML chief's words tell their own story...

"It is common knowledge that a large number, aprox. 58%, of BTL properties were acquired with liar loans and private mortgages."

Is it not about time you regurgitated the edited mod joke?
That was once funny.

Maybe some time you'd like to join in on a serious conversation / debate instead of adding your tuppence in with no factual relevance to the topic

mewbie_2

IveSeenTheLight wrote: »

Is it not about time you regurgitated the edited mod joke?
That was once funny.

Maybe some time you'd like to join in on a serious conversation / debate instead of adding your tuppence in with no factual relevance to the topic

Well I have two basic modes of operation. One is the repetitive and rather lame joke. The other is a constant nit picking wind up. You don't really get a choice in the matter.

On this occasion though, as so many other times, there is a strong element of truth in what I say. A large amount (unquantified) of BTL mortgages were taken out with liar loans on inflated salary / rent expectations and using personal mortgages. It doesn't need fact sheets to point out the bleeding obvious.

Thrugelmir

IveSeenTheLight wrote: »

So the Investors you refer to sold to who'm, OO's, FTBers, BTL's

Amongst others. Property developers both large and small as well.

Multi occupancy houses have been let in University towns for years. Property rental is not a new business. The art in business is to know when to take a profit. Greed is the undoing of many.