Reintroduce the full mortgage interest relief

HPC_Ghuol_Hunter

One of the more interesting and paranoia soaked threads over at HPC goon central is this one discussing the petition for the reintroduction of full mortgage interest relief. It has it all, HPC goons imagining themsleves in a great world war against decent home-owners and landlords that apparantly deserve to be bayonetted in the trenches (it's even got some choice Star Trek quotes in there for Trekkie fans):

https://www.housepricecrash.co.uk/forum/index.php?/topic/232871-reintroduce-the-full-mortgage-interest-relief/&

As always the jealous RFLs are attempting to band together to get the removal of interest relief discussed in parliament and signed as law. Fortunately they have on manged to scrape together circa 330 signatories. If this pathetic number is not a bellweather indicator to the bitter twisted Bruce Spanners of this world that no one is interested in your house price crash nonsense then I don't know what else is.

You can sign the opposing petition to reintroduce full mortgage interest relief and drop the 3% stamp duty surcharge here:

https://petition.parliament.uk/petitions/219279

:j:beer::rotfl::T:money:

kinger101

Pot kettle black

HPC_Ghuol_Hunter

Please enlighten.

kinger101

Knickers in a twist.

newatc

Tax relief is paid for by taxpayers. Why should those tax payers (including those that can't get on the housing ladder) subsidise others buying property.

Do agree that the stamp duty surcharge needs looking at. I think catches too many who are either not in the BTL market at all or a small player.

antrobus

By "reintroduce full mortgage interest relief" do they mean mortgage interest relief for the BTL mob, or do they mean everybody? As was previously the case. Back in the day. At least before 2000 when Bungler Brown finally killed off MIRAS.

Tom99

[FONT=Verdana, sans-serif]Mortgage interest relief for all, including home owners would just push up house prices just like low interest rates and 5/6x borrowing have done. It would not benefit the buyer only push them into more debt.[/FONT]
[FONT=Verdana, sans-serif]There might be a case for no mortgage interest relief on all residential property.[/FONT]
[FONT=Verdana, sans-serif]If I occupy my home as an owner there is no relief but if I occupy my home as a tenant there is. Maybe that would just push up rents though.[/FONT]

westernpromise

newatc wrote: »

Tax relief is paid for by taxpayers. Why should those tax payers (including those that can't get on the housing ladder) subsidise others buying property.

Only the top 40% pays any income tax so it is unlikely anyone who "can't get on the housing ladder" has to "subsidise others". The opposite is much likelier.

GreatApe

Tom99 wrote: »

[FONT=Verdana, sans-serif]Mortgage interest relief for all, including home owners would just push up house prices just like low interest rates and 5/6x borrowing have done. It would not benefit the buyer only push them into more debt.[/FONT]
[FONT=Verdana, sans-serif]There might be a case for no mortgage interest relief on all residential property.[/FONT]
[FONT=Verdana, sans-serif]If I occupy my home as an owner there is no relief but if I occupy my home as a tenant there is. Maybe that would just push up rents though.[/FONT]

There is no mortgage interest relief for landlords its just a play on words the government used to push this nonsense though. Interest is a cost and costs are reduced before you calculate profit. Somehow and uniquely to sole trader landlords with residential property the government decided a cost was no longer a cost. This was nuts so nuts they didn't do the same for corporate with residential or any other type of property.

Put it this way if a landlord replaces a light bulb it is a cost and he reduces it from his income before calculating profit and paying tax on the profit. The government then decides light bulbs are not a cost and starts talking idiotically like 'lightbulb cost relief will no longer be allowed instead a 20% tax credit will be given on lightbulbs'. That would be idiotic and its exactly the same with interest

Shame on osborn for doing this
I thought he was otherwise a good chancellor but that was just wrong and stupid

If they wanted to tinker with the housing market they could have just put an even higher second home stamp duty (say +5%) rather than screwing up standard accounting norms

Graham_Devon

GreatApe wrote: »

There is no mortgage interest relief for landlords its just a play on words the government used to push this nonsense though. Interest is a cost and costs are reduced before you calculate profit. Somehow and uniquely to sole trader landlords with residential property the government decided a cost was no longer a cost. This was nuts so nuts they didn't do the same for corporate with residential or any other type of property.

Put it this way if a landlord replaces a light bulb it is a cost and he reduces it from his income before calculating profit and paying tax on the profit. The government then decides light bulbs are not a cost and starts talking idiotically like 'lightbulb cost relief will no longer be allowed instead a 20% tax credit will be given on lightbulbs'. That would be idiotic and its exactly the same with interest

Shame on osborn for doing this
I thought he was otherwise a good chancellor but that was just wrong and stupid

If they wanted to tinker with the housing market they could have just put an even higher second home stamp duty (say +5%) rather than screwing up standard accounting norms

Errrr.

No, it's not just landlords. That's just playing the victim card.

Ask anyone with a company car or van. Or any self employed contractor with a regular place of work.

antrobus

GreatApe wrote: »

...

If they wanted to tinker with the housing market they could have just put an even higher second home stamp duty (say +5%) rather than screwing up standard accounting norms

The allowability, or otherwise of expenditure for tax purposes, does no effect "standard accounting norms". Accountants are quite used to there being a difference between accounting profits and taxable profits.