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keeprenting

Cgt On Property And "prudent Savers"

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They are gearing up to the eyeballs and taking a gamble on rising property prices. The average mortgage on a second home must be at least 75% of the property's value. We're not talking about some old lady putting aside a few pennies each month here. It's leveraged gambling, not prudent saving.

A "prudent saver" is someone like myself, who puts his money into a savings account. And is forced to take it up the *rse (0% interest rates) so that the overleveraged can be bailed out. And even if said prudent savers weren't taking it up the *rse, they would still be paying tax at 40% or 50% on the return on their money, not 18%.

In other words, 18% CGT on the capital returns from second homes is a complete joke and the Daily Telegraph and Daily Mail are not fit to be used as toilet paper.

A toned down version of this post will be winging its way to a few MPs this evening.

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They are gearing up to the eyeballs and taking a gamble on rising property prices. The average mortgage on a second home must be at least 75% of the property's value. We're not talking about some old lady putting aside a few pennies each month here. It's leveraged gambling, not prudent saving.

A "prudent saver" is someone like myself, who puts his money into a savings account. And is forced to take it up the *rse (0% interest rates) so that the overleveraged can be bailed out. And even if said prudent savers weren't taking it up the *rse, they would still be paying tax at 40% or 50% on the return on their money, not 18%.

In other words, 18% CGT on the capital returns from second homes is a complete joke and the Daily Telegraph and Daily Mail are not fit to be used as toilet paper.

A toned down version of this post will be winging its way to a few MPs this evening.

You are quite right,

I thought I was doing the right thing by being prudent and saving for the deposit to buy my own home. Turns out someone changed the rules halfway through and the only way I could have got ahead would be to lie to buy and IO mortgage myself to the eyeballs. The specualtors should be made to pay their fair whack of tax, the very idea that the 18% rate could be in anyway described as unfair is a joke. It is simply returning to what it was a few years ago and bringing it into level with other taxes - quite what they are complaining about I am struggling to understand. Someone has to pay tax and it might as well be those who can most afford it - by owning more than one house they are wealthier than most and without such low interest rates many would have been repossesed by now anyway.

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They are gearing up to the eyeballs and taking a gamble on rising property prices. The average mortgage on a second home must be at least 75% of the property's value. We're not talking about some old lady putting aside a few pennies each month here. It's leveraged gambling, not prudent saving.

A "prudent saver" is someone like myself, who puts his money into a savings account. And is forced to take it up the *rse (0% interest rates) so that the overleveraged can be bailed out. And even if said prudent savers weren't taking it up the *rse, they would still be paying tax at 40% or 50% on the return on their money, not 18%.

In other words, 18% CGT on the capital returns from second homes is a complete joke and the Daily Telegraph and Daily Mail are not fit to be used as toilet paper.

A toned down version of this post will be winging its way to a few MPs this evening.

A prudent saver:

Savings interest normally has tax taken off at 20 per cent before you receive it. If you're a higher rate (40 per cent) or additional rate (50 per cent) taxpayer, you'll owe tax on the difference. If you have a low income you may be able to claim tax back.

How fair is that..........nil growth.......plus a higher tax rate, and credit interest paid that is less than the rate of inflation...so you are not saving you are losing.....do they think we are mugs.

Second home owners will have to pay higher taxes for their high leveraged unearned incomes...that make the richer richer as well as stealing the homes from the savers who can now no longer gather the money together to buy one...their earned taxed income and taxed savings will never catch up low rate IO loans, high rents and low tax capital gains. :angry:

This is very unfair unjust and needs to be corrected. ;)

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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