Private Landlords

desn161

I am a private landlord and have 4 student apartments in Glasgow. I am losing money from the pandemic as the apartments are not occupied all the time and I still have to pay the service charges. As a private landlord surely I will be classed as a business and be able to claim for loss of earnings as this with another property in Fife are my only source of income

Jeremy535897

Unfortunately not. Renting out property to students is not a business for SEISS.

sweetsand

desn161 said:

I am a private landlord and have 4 student apartments in Glasgow. I am losing money from the pandemic as the apartments are not occupied all the time and I still have to pay the service charges. As a private landlord surely I will be classed as a business and be able to claim for loss of earnings as this with another property in Fife are my only source of income

Not unless you registered as a proper business and even then it's a big fat zero.
We have one apartment, lovely location mins walk from the station - we only let to working professionals via
agents but the service charges go up quite a lot so its the first and last apramnt for us as the others are houses

The gov was buy helping the t's as usal and banging home the LL's still have responsibility to fix even if no rent we know that and the T's can't be evicted for no rent for months - my BiL had 20+ properties and they have mortgages on half of them we don't we only have a few and I recall him saying something about a mortgage holiday, not sure for how long and if interest still piles on

As a LL, you have no real rights IMO.

Jeremy535897

Registering as a proper business has no meaning in this context. The income is non-trading income. If you take a mortgage break interest continues to accrue.

Thrugelmir

Reliance on BTL for the only source of income is never advisable. Leveraging with debt is a double edged sword. A risk that is known at the outset. 

sweetsand

Thrugelmir said:

Reliance on BTL for the only source of income is never advisable. Leveraging with debt is a double edged sword. A risk that is known at the outset. 

Exactly why we buy cash. Therefore, periods of vacant property/etc, paying the rates, standing charges and for the apartment service charges but no mortgage. 
It's getting harder to become a landlord and too often we see property trashed by non paying or even paying rent. LL often loses out thousands and we are now limited to 6 weeks rent as deposit. I'd sell up but the 40% tax on the gains is off putting but I have ended tenacies were the T is taking the mick - though I lose a lot of money, the T is usally surpised when they get their notice. Last few years we've been lucky but it's hard being a landlord

Jeremy535897

I'd sell up but the 40% tax on the gains is off putting

Tax rate on gains on residential property is a maximum of 28%.

nicechap

Jeremy535897 said:

I'd sell up but the 40% tax on the gains is off putting

Tax rate on gains on residential property is a maximum of 28%.

Thank you for that, fits with other misleading info they've posted.

sweetsand

Jeremy535897 said:

I'd sell up but the 40% tax on the gains is off putting

Tax rate on gains on residential property is a maximum of 28%.

Can you give me a link please and my OH is a 40% taxpayer

Grumpy_chap

No link needed - just ask your Accountant, who will confirm that Jeremy is correct, even for 40% income tax rate.
Given the massive business empire you operate and the fleet of luxury cars, this sort of thing must be basic business fundamentals for you and the cost of an Accountant negligible.  In fact, your Accountant must be brilliant if he keeps you in basic rate and OH in higher rate, as it would almost be expected you would both be in additional rate by default based upon the income levels you must realise from the business empire and required to fund the fleet of cars.

Jeremy535897

sweetsand said:

Jeremy535897 said:

I'd sell up but the 40% tax on the gains is off putting

Tax rate on gains on residential property is a maximum of 28%.

Can you give me a link please and my OH is a 40% taxpayer

Of course. See https://www.gov.uk/capital-gains-tax/rates

"Capital Gains Tax rates

You pay a different rate of tax on gains from residential property than you do on other assets.

You do not usually pay tax when you sell your home.

If you pay higher rate Income Tax

If you’re a higher or additional rate taxpayer you’ll pay:

• 28% on your gains from residential property
• 20% on your gains from other chargeable assets

If you pay basic rate Income Tax

If you’re a basic rate taxpayer, the rate you pay depends on the size of your gain, your taxable income and whether your gain is from residential property or other assets."