118 Landlords Panic and try lobbying MP's yet again

chucknorris

Generali wrote: »

One day a bunch of BTL investors will discover that risk is real.

Some just have, due to the recent budget changes.

wotsthat

Graham_Devon wrote: »

You can't help but feel for anyone who has lost out as a result of a tax change.

What feeling's that? Schadenfreude?

Graham_Devon

wotsthat wrote: »

What feeling's that? Schadenfreude?

Give it a rest. My ankle needs some time to itself.

The-Joker

This could be a worry when interest rates go back to normal.

Also 5 years after the first HTB generation bought, they will start having to pay interest on that 20% that they had got used to having interest free.

antrobus

Graham_Devon wrote: »

It's a none issue for many landlords. Two third's of landlords apparently own their properties outright. ....

A significant proportion of private landlords (32%) own their property outright -
http://www.business-money.com/announcements/landlords-increasingly-optimistic-about-capital-gains-on-property#sthash.rKO1xzmD.dpuf

It would therefore be more accurate to state that two thirds of landlords don't own their properties outright.

Graham_Devon

antrobus wrote: »

A significant proportion of private landlords (32%) own their property outright -
http://www.business-money.com/announcements/landlords-increasingly-optimistic-about-capital-gains-on-property#sthash.rKO1xzmD.dpuf

It would therefore be more accurate to state that two thirds of landlords don't own their properties outright.

Yep, got that the wrong way round.

Generali

cells wrote: »

I just realised (while trying to work out an example of the impact in a steel plant) that it would not impact companies as no company is a 'higher rate earner'

That is to say with corporate tax at 20% and the 20% interest claimable its no impact. In fact if they reduce corp tax to 18% and keep the interest credit at 20% there would be an incentive for corpts to load up on debt.


I suspect one side effect if this change will be that BTL lenders might start charging very high upfront fees and very low interest rates.

I assumed that the conversation was moving to simply removing the ability to count debt interest as a cost of doing business. You pay Corporation Tax on your profits and your profits are calculated, as you imply, net of interest.

A change in the BTL lending model is one possible outcome.

My feeling since BTL really got popular in the early 00s is that people got their fingers badly burnt by the asset management industry (Equitable Life, with profits policies, dot com boom) and they simply aren't interested in holding large values of assets with asset management companies.

People feel that they understand houses. They're safe as bricks and mortar. I think a lot of BTL investors will suck up the loss and keep their money in the market, basically because if they're going to lose money at least they're not paying some City !!!! to lose it for them.

wotsthat

antrobus wrote: »

A significant proportion of private landlords (32%) own their property outright -
http://www.business-money.com/announcements/landlords-increasingly-optimistic-about-capital-gains-on-property#sthash.rKO1xzmD.dpuf

It would therefore be more accurate to state that two thirds of landlords don't own their properties outright.

..and AIUI (I'm not a landlord) it doesn't mean they're unaffected because they may have borrowed against their main residences to fund their BTL's and claiming tax relief.

ukcarper

wotsthat wrote: »

..and AIUI (I'm not a landlord) it doesn't mean they're unaffected because they may have borrowed against their main residences to fund their BTL's and claiming tax relief.

Can they do that.

antrobus

wotsthat wrote: »

..and AIUI (I'm not a landlord) it doesn't mean they're unaffected because they may have borrowed against their main residences to fund their BTL's and claiming tax relief.

That is, I believe, possible.

I have no idea of whether or not that possibility was included or otherwise in the definition of landlords who 'own their property outright' by the people who designed the survey that produced that result.