BTL: Political Risk

Mistermeaner

I like this thread more than the others.

Wish George would stop messing with tax and just cut those damn benefits.

Cutting pension tax relief would really p I ss me off - particularly while the public sector still enjoy ludicrously generous schemes they don't pay for.

Taxing private pensions will just further distort the equivalent value of the government schemes.

Policeman retiring at age 48 with index linked DB schemes worth millions

BananaRepublic

I doubt they will attack pensions, they want as few people as possible on benefits at retirement. Public sector pensions are beng restructured, and new entrants do not get the huge perks of yore. Changing state pension credits to 35 years from 30 is fair as we live longer and even 35 years is not so much.

BTL? I'll skip that discussion.

wotsthat

The OP title could easily be 'Anything : Political Risk'.

Child Benefit : Political Risk, Tax Credits : Political Risk etc. etc.

BTL is flavour of the month at the moment. Tomorrow it'll be something else that's the 'right' thing to tax.

Tax is the single biggest spend for most people - I just wish the government would stop spending so much on my behalf.

mwpt

Mistermeaner wrote: »

Cutting pension tax relief would really p I ss me off - particularly while the public sector still enjoy ludicrously generous schemes they don't pay for.

Taxing private pensions will just further distort the equivalent value of the government schemes.

Policeman retiring at age 48 with index linked DB schemes worth millions

Hey, we found something we agree on. I can't believe Osborne would be serious about cutting pension tax relief when I don't believe the state pension is going to work for us when we get there. Or perhaps he is and the first move was the BTL tax and stamp duty changes making sure the money didn't immediately flood elsewhere.

Graham_Devon

wotsthat wrote: »

The OP title could easily be 'Anything : Political Risk'.

Child Benefit : Political Risk, Tax Credits : Political Risk etc. etc.

BTL is flavour of the month at the moment.

Probably why there is a thread named "BTL: Political Risk" and not one of those you list.

If it's flavour of the month, as you so eloquently put it, it's at higher political risk, hence the thread about it.

You're welcome. Merry Christmas.

westernpromise

redux wrote: »

Osborne has also increased capital gains tax after Alistair Darling reduced it, is planting rumours about further limiting tax relief on pension contributions, and will soon have frozen the inheritance tax nil rate band for longer than any other period since the Second World War.

Is the man worse than any socialist for increasing stealth taxes on the comfortably well off?

Osborne is basically a Labour chancellor.

chucknorris

mwpt wrote: »

Hey, we found something we agree on. I can't believe Osborne would be serious about cutting pension tax relief when I don't believe the state pension is going to work for us when we get there. Or perhaps he is and the first move was the BTL tax and stamp duty changes making sure the money didn't immediately flood elsewhere.

I have no idea what he is going to do with pension tax relief, but I'm very interested to see what he actually does.

CLAPTON

back on the subject
the political risk is what will happen in say 2/3/ years to rental property.
If the cost of renting goes up significantly and that is related to government changes, then they might be seen as economical incompetent.

kinger101

BananaRepublic wrote: »

I doubt they will attack pensions.

Lamont and Brown have already done this. An Osborne reduced the contributions limit by £250K to £1m. A lot of the other changes that are touted as "increasing freedom" are in reality about accelerating the taxation of pension pots.

I'd think within the next decade, the tax relief (or deferment as it should be called) might be limited to basic rate. And the 25% tax free lump sum will start to be decrease. Once that has gone, there's no real benefit to a pension scheme over an ISA. In fact, the ISA is cheaper, and I'd rather pay income tax today than assume the basic rate when I retire will be lower.

Most chancellors only care about the tax receipts during their tenure.

kabayiri

BTL landlords have had a pretty good run. I'm not sure there is much room for complaint.

The government chucks nearly £30bn a year providing housing assistance and support.

What other asset class gets anything like that level of assistance?

Wouldn't running your property portolio from a limited company get around some of the complaints on the loss of relief?