Thursday, Oct 04, 2007
Buy to let tax breaks numbered....
Firstrung: Potential buy to let tax reforms opposed by Paragon
In response to the Institute of Director's report on the tax status of buy-to-let investors, Nigel Terrington, chief executive of the Paragon Group, said: "The IOD misses the point that buy-to-let is a business activity in exactly the same the way as investment in commercial property. Businesses making investments are entitled to offset their interest expenses against tax. Buy-to-let should be no different - the interest on any borrowings is a straightforward business expense, not a tax relief.
Posted by converted lurker @ 11:39 PM (378 views) Add Comment
5 Comments
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1. Ihopeitgoeswithabang said...
Hmmm no self interest on behalf of Paragon there then?
Bottom line is that Tax legislation has nothing to do with fairness whatsoever.
I have often thought that many taxes didnt quite suit me either - strangely that doesnt seem to matter.
They also fail to mention that if these properties were not bought up by greedy landlords then people would be able to buy and not rent!
2. Mgr said...
I agree that buy-to-let should be treated no different to any other business. What follows from that is that they should pay BUSINESS RATES on their property, not council tax or residential rates. I wonder would they like that?
3. alan said...
Massaging the market is becoming a little difficult as some of the more aggressive remortgage lenders (whose adverts dominate TV) are getting more reposessions and defaults. Cracks are there if you look.
I think a few canny BTLers have left the market, while gently talking it up!
Next months quarterly repossession stats will make painful reading.
4. John Squire said...
I do not like BTL people ,however,expenses and borrowing cost (interest only) are tax deductable.If you start picking on BTL and making the rules different for them you are on a slippery slope.What next stop loan interest for hotels (think about it they buy to let) then all major hotels would face financial crisis,and so would the country.Nobody could do business in England.
5. Luigi said...
Perhaps Paragon forget that housing is an essential resouce for the population directly linked with the quality of life... what are they going to speculate on next water.
Also they seems concerned for people who can't get on the propety ladder and have to rent... and the buy to let would provide more rentable properties... but wait a minute isn't the buy to let one of the main reasons why they can't buy in the fist place and spend their life payng the mortgage for someone else!?