Ignore the landlord martyrs: time for the BOE to intervene

mwpt

HAMISH_MCTAVISH wrote: »

This will inevitably force rents up faster than they otherwise would have risen.

I doubt it. How will we tell who was correct?

HAMISH_MCTAVISH

mwpt wrote: »

I doubt it. How will we tell who was correct?

Under the old taxation and supply regime rents have risen by 24% in the last 5 years, versus cumulative CPI inflation of 14%, so rents are now up 10% in real terms.

If they rise more than that over the next 5 years I'm claiming a victory on this point...;)

CLAPTON

Pennywise wrote: »

Surely, the new tax relief restriction only affects higher rate taxpayers, so those "amateur" landlords with just one BTL probably won't be hit at all.

And those "pensioners" who've bought a BTL to increase their income won't be hit either, as if they're getting an income, then that suggests they have a very low or zero mortgage anyway.

I see it as only affecting those with multiple BTL's, all heavily mortgaged, or those already paying higher rate tax by virtue of their jobs.

So, basically, despite all the whingeing, relatively few "normal" small landlords are going to be hit.

it's a little bit more complicated than that.

previously you were a higher rate tax payer based on
letting profit + other taxable income

now you are a higher rate taxpayer based letting turnover + other income

the basis rate tax is 'refunded' by a credit
so the effect is that some-one who is not a higher rate taxpayer could become one