BTL tax giveaway

Jonbvn

wecanhelpu wrote: »

What, like this one?

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/01/13/pword13.xml

Yes! I quote from the article....

As I've said , in the long run buy-to-let is a decent way to make money. But that doesn't mean there won't be lean years as well as ones of plenty.

mystic_trev

Gorgeous_George wrote: »

But ALL businesses receive tax relief on their borrowings. Costs are ALWAYS off-set against tax and there are many blatant tax avoidance scams outside of the BTL market.

However, it's always nice to get a reminder as to why I rarely buy newspapers.



GG

BTL may have been seen as a 'business' when I bought 11 years ago. Now it's just asset speculation.

pickles110564

Ad wrote: »

I come back from a hard days work and the presses are still churning.

There certainly seems to be growing anger at property speculators. Regardless of whether one views 'Buy to let' as a business its a business that has resulted in socially excluding millions from owning their own home and having the security that comes from it.

I think we are being prepared for something. Something is defiantly afoot...

Only because you trolls keeping feeding it, you trying to scare everyone just to make you feel better because you missed the boat

Ad

pickles110564 wrote: »

Only because you trolls keeping feeding it, you trying to scare everyone just to make you feel better because you missed the boat

Why would these articles scare anyone? They may touch a nerve with some but hopefully educate and enlighten others. You mean the boat thats currently taken on far to much credit than it should have and is about to sink.

kennyboy66_2

Gorgeous_George wrote: »

But ALL businesses receive tax relief on their borrowings. Costs are ALWAYS off-set against tax and there are many blatant tax avoidance scams outside of the BTL market.

However, it's always nice to get a reminder as to why I rarely buy newspapers.



GG

Except that BTL is not, for most people, a business. It is an alternative long term investment to their pension or stock market savings.

You cannot claim tax relief on money borrowed to buy shares unless it is classed as a qualifying loan to fund the purchase of shares in the company you work for.

Like it or not some of the tax system tries to encourage some behaviour that might increase investment, entrepeneurship or employment. This is the basis for taper relief.

Historically the UK was poorly served in the private rental market. Shorthold tenancy & BTL has addressed much of (or oversupplied) the private rental market. The upside is that there is a thriving rental market now - the downside is that property prices are out of reach for many people & are driven up by BTL demand.

It is difficult to argue now that we need to encourage developers to build thousands more flats (probably to stand empty) to be purchased by BTL landlords who enjoy tax breaks to do.

It would not surprise me to see some elements of tax relief for landlords phased out. Like most government schemes there is bound to be unintended consequences of any changes.

The reason why some on this board and media in general are "green with envy", is the "loadsofmoney" & "considerably richer than yow" attitude of a fair minority of BTL'ers.

Maybe you reap what you sow.