The economy and the autumn statement

CLAPTON

cells wrote: »

it is also not always the case. I know one landlord who owns over 30 properties outright and as its in a cheap area I reckon he averages just £550pm for each one. He is also a higher rate tax payer (has other income too) so of that £550pm, £220pm goes as income tax. The cost of those properties (if they were let to a poor family in receipt of HB which some are) are thus £330pm which must be about where social rents are if not below social rents.

he will also end up with a substantial capital gains tax when he does sell which he will have to at some stage if for no other reason than death. So the cost will be even lower than £330pm

happily, there is no capital gains tax on death

michaels

Presumably the extra 3% applies to foreign buyers and all the way up the bands including the new top band?

Fella

HENRY78 wrote: »

I think Private landlords are the scum of the earth

Really? In these times, you think landlords are the scum of the earth?

HENRY78 wrote: »

...for a variety of reasons as partially stated in my posts above. There are solutions. But the government would have to be very drastic.

Tell me if BTL landlords didn't exist what value and service do you provide that the public would miss?
What jobs and wealth do you create?

I know quite a few BTL landlords. Without exception they became BTL landlords as they had earnt a lot of dough doing well-paid jobs (which pretty much all of them continue to do) & being fairly bright at some point it made sense to include BTL in their portfolio of investments.

Pretty much all of them do jobs that you would miss instantly if they stopped being done.

cells

CLAPTON wrote: »

happily, there is no capital gains tax on death

really?

how does it work then.

If mr dead purchased a house for £100k and it was £200k on his death and assuming his is wealthy enough to fall in to the inheritance tax.

I thought first they chop off CGT (so £28k of the £100k gain) and then inheritance tax of 40% for the remaining £72k to leave Mr dead estate with £43,200 of the £100,000 gain.

cells

gov website shows stamp duty changes will bring in an extra

£625m
£700m
£760m
£825m
£880m

anyone care to comment on that?

wymondham

Pity they kept Stamp duty... awful tax....

Did they do anything to help people downsize to free up bigger homes?

antrobus

cells wrote: »

really?

Yes, really.

cells wrote: »

...
how does it work then.

If mr dead purchased a house for £100k and it was £200k on his death and assuming his is wealthy enough to fall in to the inheritance tax.

I thought first they chop off CGT (so £28k of the £100k gain) and then inheritance tax of 40% for the remaining £72k to leave Mr dead estate with £43,200 of the £100,000 gain.

Not like that.

When a person dies there is no CGT charge. At least, not since the 31st March 1971. So you are only 44 years behind the times.:)

mwpt

chucknorris wrote: »

It just occurred to me, will the chancellor introduce some new rule about paying the additional 3% stamp duty if someone buys, moves in for a while then lets out the property? Perhaps if you don't live there for say at least 12 months you would still be liable for the additional 3% stamp duty, otherwise a loophole exists.

Another loophole is to simply let out your existing home and buy another one to live in.

Surely this is all covered by the second home clause, will also incur 3%, regardless if you plan to live in it or not?

chucknorris

mwpt wrote: »

Surely this is all covered by the second home clause, will also incur 3%, regardless if you plan to live in it or not?

Yeah I forgot it also included second homes (as well as a BTL), I suppose it won't matter if you intend to live in it or not, they will still class it as a second home, even if it is going to be your main residence.

setmefree2

As well as introducing new stamp duty rates and cutting tax relief, Osborne has also confirmed the Financial Policy Committee will be given the power to control the sector, although it has not yet been decided what these powers will be.

http://www.moneymarketing.co.uk/has-the-chancellor-driven-small-landlords-out-of-the-market/

The Buy to Let Business managing director Ying Tan suggests buy-to-let lending could fall next year as a result of the clampdown by policymakers.
He says: “Put together, the recent measures aimed at buy-to-let make it a very challenging market and if the Government doesn’t want the sector to exist – or exist as big as it is now – then they will keep introducing measures. Will buy-to-let lending fall next year? It’s possible.