Private Landlords

Jeremy535897

I should also add that, under the new rules applying to capital gains on residential property, a return online has to be filed, and tax paid, 30 days after completion (unless the gain is exempt, for example because it is a main residence). See:
https://www.gov.uk/capital-gains-tax/report-and-pay-capital-gains-tax

sweetsand

Jeremy535897 said:

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."

Thank you of course. I got confused with IHT as we were looking this up a couple of years ago when we gifted money and property to our children.

Grumpy_chap

Jeremy535897 said:

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."

You are too kind...

Jeremy535897

I just try not to judge. Sometimes it can be hard. Those are the posts that don't make it to the post comment button.

Galloglass

Seems that landlords will have another 4 weeks of pain. 

But if the landlord is suffering then the tenant may be suffering too. Any landlord that is suffering, might want to see if their tenants intend to access a Council's Discretionary Housing Payments to cover any shortfall. 

https://england.shelter.org.uk/housing_advice/benefits/discretionary_housing_payments_dhp?

It may end up with the taxpayer shelling out more cash but the alternative would be a severe strain on mortgage providers. Shades of 2008.

cool-dog

Poor landlords, if you can't cope with it don't do it.
sweetsand said:

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

sweetsand said:

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

Grumpy_chap

cool-dog said:

Poor landlords, if you can't cope with it don't do it.

These current eviction bans are, in some cases, misguided and in the long term will work against good tenants.  As there are some bad tenants that have taken the view they can simply stop paying rent because of coronavirus (irrespective of whether their personal financial position is impacted) as they cannot be evicted.

You are entitled to not be a fan of landlords, but they are providing a service as a business and they other half of the service being provided is an obligation on the tenant to pay rent.  Good landlords will consider some forbearance where there is a genuine impact arising from coronavirus, but the unilateral non-payment is unsustainable for any type of business. 

I can't think of any other type of business where the non-payment and suspension of penalty / recovery action woudl be entertained, even with coronavirus.  Even the "payment holidays" on loans and mortgages are not free as the lender continues to charge interest during the non-payment period and can then pursue normal recovery routes if subsequent (increased) payments are not maintained.

The comment about "poor landlords..." is akin to me going into Curry's, buying a TV but never paying for it and then saying "poor retailers..."

sweetsand

Galloglass said:

Seems that landlords will have another 4 weeks of pain. 

But if the landlord is suffering then the tenant may be suffering too. Any landlord that is suffering, might want to see if their tenants intend to access a Council's Discretionary Housing Payments to cover any shortfall. 

https://england.shelter.org.uk/housing_advice/benefits/discretionary_housing_payments_dhp?

It may end up with the taxpayer shelling out more cash but the alternative would be a severe strain on mortgage providers. Shades of 2008.

Thanks. Everyone we know are either cash buyers or have enough to carry over rainy days and thankfully none of us have students, those out of work or the self employed, touch wood, so far we are ok but the LL never gets anyhting other than losing out when bad T's not only don't pay rent but you have court fees to evict can take months and then some trash your place.

Grumpy_chap

sweetsand said:

none of us have students, those out of work or the self employed, 

These groups, taken as a whole, are no more or less likely to be bad tenants than the population at large.  Indeed, sometimes, they can be more grateful for a good property and good landlord, given the extent of prejudice against them.

Thrugelmir

Grumpy_chap said:

cool-dog said:

Poor landlords, if you can't cope with it don't do it.

The comment about "poor landlords..." is akin to me going into Curry's, buying a TV but never paying for it and then saying "poor retailers..."

When companies borrow money and they are unable to service the debt. They go bust.  That's the real world of business. Not a fairy tale where somebody else bails them out. Dog eats dog. Take a risk suffer the consquences.