New higher stamp duty for BTL/second homes

roddydogs

Surely, you can just buy a "House" to live in, then after 3 months rent it out, how do they then collect the 3%?

chucknorris

roddydogs wrote: »

Surely, you can just buy a "House" to live in, then after 3 months rent it out, how do they then collect the 3%?

Yes, but it would have to be your first and only house, remember it isn't just BTL, it is also second (and subsequent) homes. We haven't seen the details yet, obviously some definitions are required for clarification.

antrobus

leveller2911 wrote: »

...In what way was I wrong?......... What was the HB cap in London pre 2010?.Can you provide a link where it shows there was a Housing Benefit cap in London Pre 2010?.......

The "limit on the HB for the different types of property related to the local area", otherwise known as Local Housing Allowance, was introduced on the 7th April 2008.

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN04957

Thus there would have been limits on HB in London before 2010, but they would have been set by each separate LA in London.

antrobus

CLAPTON wrote: »

...and I've no idea what you mean about small ltd companies claiming 'in work' benefits

Neither do I.:)

For one thing, unless something has changed recently, a company engaged in renting out properties normally counts as an investment business, and so director's remuneration would not be an allowable business expense. Thus I don't see how someone could claim tax credits by virtue of being remunerated by their property rental business.

antrobus

leveller2911 wrote: »

... On top of that they could pay themselves tax free dividends at the end of the year. The divvies didn't go towards their income for benefit purposes and as such they could claim in work benefits......

What? See;

Include any UK company dividends you’ve received. Also add in the tax credit - shown on the dividend voucher supplied by the company.

Tax credits: working out income
https://www.gov.uk/guidance/tax-credits-working-out-income

You are clearly a lot less "street savvy" than you think you are.:rotfl:

chucknorris

antrobus wrote: »

What? See;

Include any UK company dividends you’ve received. Also add in the tax credit - shown on the dividend voucher supplied by the company.

Tax credits: working out income
https://www.gov.uk/guidance/tax-credits-working-out-income

You are clearly a lot less "street savvy" than you think you are.:rotfl:

I didn't know for sure, but it just didn't look logical, that someone's dividend income wouldn't count.

antrobus

chucknorris wrote: »

I didn't know for sure, but it just didn't look logical, that someone's dividend income wouldn't count.

Of course it ain't logical. The very idea is absurd.:)

movilogo

There should be a limit of how many properties someone can buy for BTL (in directly or indirectly using legal loopholes).

Also, foreigners should be not allowed to buy in UK until they are resident here.

lisyloo

Movilogo - I too am concerned about foreign investors but you need to bear in mind that they are bringing a lot of money into the country.
I'm not arguing either way just pointing out there are consequences.
I live in a small flat in central London and both places I've lived ( one swanky, one ex-la) are surprisingly empty.

HappyMJ

movilogo wrote: »

There should be a limit of how many properties someone can buy for BTL (in directly or indirectly using legal loopholes).

Also, foreigners should be not allowed to buy in UK until they are resident here.

Why how many? If they make the limit one which is what they have effectively done by introducing SDLT on second properties then a person could sell a small BTL property (let's say a 2 bed flat) and buy a bigger property maybe even a large HMO building renting rooms out to short term tenants. To avoid SDLT on second properties the home a couple lives in would need to be transferred into one partners name and the other partner buys the BTL....therefore no tax due as each partner owns one home.