Capital Gains Tax up to 40%!

Thrugelmir

silvercar wrote: »

They have to be suitable (size, location) for you to want to move into.

They also have to have made a significant profit for you to have to worry about CGT. CGT allowance is currently £10,100 per person. So a couple jointly owning a BTL would need to make a profit of over £20k once buying and selling costs have been excluded, to be within the realms of CGT.

Often the lower earner in a partnership receives the rental income to avoid higher rate levels of income tax.

If there's no profit then its not a worthy investment.

DiggerUK

If they leave the CGT exemptions on Gold Sovereigns and Gold Britannias, all the BTLers will be doubly p1ssed off that they did not buy gold.

Just rejoice at that news.

StevieJ

chucknorris wrote: »

Would me and chucky be enough people?

No but but more are joining

The National Landlord Association (NLA) is calling on the Government to include capital gains from the sale of residential property as part of the wide-ranging "generous exemptions".
Otherwise the new CGT regime will act as a significant disincentive for landlords considering further investment, it says.
NLA chairman David Salusbury says: "When landlords let property they are running a lettings business. Today, we are calling on the Government to ensure profits from this business activity are included as part of the exemptions.

http://www.ifaonline.co.uk/ifaonline/news/1636051/adviser-warning-nasty-cgt-rise-scupper-investor-activity

silvercar

StevieJ wrote: »

No but but more are joining

The National Landlord Association (NLA) is calling on the Government to include capital gains from the sale of residential property as part of the wide-ranging "generous exemptions".
Otherwise the new CGT regime will act as a significant disincentive for landlords considering further investment, it says.
NLA chairman David Salusbury says: "When landlords let property they are running a lettings business. Today, we are calling on the Government to ensure profits from this business activity are included as part of the exemptions.

http://www.ifaonline.co.uk/ifaonline/news/1636051/adviser-warning-nasty-cgt-rise-scupper-investor-activity

and pigs will fly.

Premier_2

Jonbvn wrote: »

Have you never noticed the numerous property !!!!!! on the TV, with people purchasing homes for quick profit?

Surely you wouldn't disagree that this increase in CGT would act as a huge disincentive for anyone considering investing in BTL?

You mean shows like that one Sarah Beenie presents?

That's primarily about property development rather than BTL.

I'm not sure how investing in a property primarily to rent out and receive rental income from (BTL) has any decision based on CGT liability.
CGT is only liable on the sale of such property. If the property has increased in value, that is a bonus but one on which tax should be paid.

Property development is entirely different as the 'profit' is supposed to be generated from added value the work put into the property has created.
(Typically this is rarely achieved. The shows used to be watched years ago because of perceived profits, which as Sarah often goes to great extent to explain, was not a profit from property development, but simply a relection of the rise in prices during the months the development was taking place)
Again, I'm not sure how CGT liability affects this, if at all.

Gorgeous_George

Just flip your second home, sell up and pay 0% - job done and I'm sure it'll be within the rules.

GG

silvercar

Gorgeous_George wrote: »

Just flip your second home, sell up and pay 0% - job done and I'm sure it'll be within the rules.

GG

Unless your an MP you need to live in it in order to flip; which you can't do if its let out.

zarazara

Its about time farms had to pay Inheritance Tax. They can pass the farm on to their heirs free of IT ,but its usually a farm and farmhouse with fantastic views and worth a fortune. As they have had ££££££ of tax payers subsidies over the years the farmers just do better and better and better despite all the whining they do.

IveSeenTheLight

kennyboy66 wrote: »

100% wrong.

He's not, you can borrow against a residential home to buy a BTL and claim the interest on that part of the loan

IveSeenTheLight

Pennywise wrote: »

100% right actually - it doesn't matter what the loan is secured on - you can claim relief on any loan up to the value of the property when it was first rented out.

100% right