First time landlords: VAT? Tax?

AnotherJoe

Miss_Samantha wrote: »

Because they are a business and in general taxed on profit.

Companies and sole traders can claim tax relief on loans, can't they?

If they want to be a business, start a company. No issue with that.

Sole traders arent usually competing with private individuals for the same resource (and hiking the price of that resource) which though is the issue with BTL landlords as individuals.

lovinituk

How funny, we have a HPCer (Crashy) and a 118er (Samantha). You couldn't get more polar opposite. Both in the ring, last one alive wins

Miss_Samantha

The 'unfair advantage' is just a simplistic claim that works well politically not least because private landlords are one of those business categories which do not attract much public sympathy. It is easy and cheap to hit them for political gains.

The proof is simply to read how much traction those claims get.

But that's all it is. They does not pass any actual scrutiny.

Now, "landlords can just start a company". Well, yes and then they are able to offset mortgage interests against rent again. That's exactly the same 'unfair advantage'.

Private landlords, individuals or companies, are not the cause of the problem and hitting them will therefore not solve the problem.

Crashy_Time

Miss_Samantha wrote: »

The 'unfair advantage' is just a simplistic claim that works well politically not least because private landlords are one of those business categories which do not attract much public sympathy. It is easy and cheap to hit them for political gains.

The proof is simply to read how much traction those claims get.

But that's all it is. They does not pass any actual scrutiny.

Now, "landlords can just start a company". Well, yes and then they are able to offset mortgage interests against rent again. That's exactly the same 'unfair advantage'.

Private landlords, individuals or companies, are not the cause of the problem and hitting them will therefore not solve the problem.

What is the cause of the problem in your opinion?

Victor_the_Gink

Miss_Samantha wrote: »

The 'unfair advantage' is just a simplistic claim that works well politically not least because private landlords are one of those business categories which do not attract much public sympathy. It is easy and cheap to hit them for political gains.

The proof is simply to read how much traction those claims get.

But that's all it is. They does not pass any actual scrutiny.

Now, "landlords can just start a company". Well, yes and then they are able to offset mortgage interests against rent again. That's exactly the same 'unfair advantage'.

Private landlords, individuals or companies, are not the cause of the problem and hitting them will therefore not solve the problem.

You have hit the nail on the head. The solution to the problem, is clear, we need to build more houses, where they are needed. That is the bottleneck.


However, as you well know, political expediency will always win through. The triple lock is grossly unfair, and the single biggest government spend. Staggeringly, bigger than all other welfare spending combined. However, pensioners are "nice", and more importantly, pensioners vote, so very little has been done.


Similarly, as we have a society where most under 40 rent, and many can see no hope of buying, it is every day becoming more politically expedient to kick LLs. LLs are certainly not popular. I can't fight it, it is a predictable consequence, and when it becomes overbearing I will sell up and to hell with it all.


http://www.ukpublicspending.co.uk/uk_total_spending_pie_chart

Crashy_Time

It will be too late to sell up when everyone twigs what is happening? Unless you bought years ago of course?

Victor_the_Gink

Crashy_Time wrote: »

It will be too late to sell up when everyone twigs what is happening? Unless you bought years ago of course?

I think I'll be fine. I can't give you a 100% assurance though, Crashy. Life is about risk, and reward. To get reward, you have to take risk. If you take no risk, like the nutters on HPC, you will get no reward. There is no such thing as a free lunch.

Crashy_Time

Victor_the_Gink wrote: »

I think I'll be fine. I can't give you a 100% assurance though, Crashy. Life is about risk, and reward. To get reward, you have to take risk. If you take no risk, like the nutters on HPC, you will get no reward. There is no such thing as a free lunch.

Many people on HPC are taking "risk" in the stock market etc. TBH you sound a little bit peeved that the tide has turned against BTL?

Crashy_Time

https://www.property118.com/member/?id=583