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Taxman Gets £2Bn From Buy-To-Let Surge


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HOLA441

http://www.telegraph.co.uk/finance/personalfinance/10163359/Taxman-gets-2bn-from-buy-to-let-surge.html

The buy-to-let tax-take is up 13pc year on year, according to the latest available data, with the number of property investors standing at a record 1.9m.

Accountants UHY Hacker Young, which produced the figures, warned that the popularity of buy-to-let has prompted HM Revenue & Customs to clamp down on the sector.

A special taskforce has been established to tackle property tax cheats, according to Hacker Young. It predicts HMRC will become “far more aggressive in pursuing undeclared rents and disposals”.

Latest data from a range of sources confirm buy-to-let is at the vanguard of the housing recovery, with existing landlords enlarging their portfolios and new investors joining the sector. They are helped by low mortgage rates, driven down in part by the Government’s Funding for Lending initiative.

And when property investors own all the property????

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HOLA446

Excellent news, renters not only buy the landlords' properties for them and their lazy, do-nothing lifestyles....but also an increasing amount of tax to the government (via their landlord).

Well not really. The renter pays rent for the roof over his head and the landlord pays tax on his profits. The big tax windfall will be from penalties imposed on the landlords who have not been correctly declaring their rental income, they were never going to get away with it, with a captive audience why would HMRC start checking the tickets before the theatre was full?

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HOLA447

If houses were cheaper, perhaps more homeowners would own their own homes outright with no tax due to anyone. Are you suggesting the landlord's profit does not arise from payments received?

Hang on, it could really work. The people who owned their homes, would have more disposable income, which they could spend on goods (like plants grown in a local nursery and sold at a local garden centre) and services (like dry-cleaning, pubs and restaurants). The HMRC could could collect PAYE on all the earned income and VAT on all the sales. The local council could collect business rates from all the local businesses. We could call this whole mutually advantageous process of trade and exchange "the economy". Just imagine...

Actually, screw that, let's just take out massive loans and try to outbid each other on the crap houses ;)

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Well not really. The renter pays rent for the roof over his head and the landlord pays tax on his profits. The big tax windfall will be from penalties imposed on the landlords who have not been correctly declaring their rental income, they were never going to get away with it, with a captive audience why would HMRC start checking the tickets before the theatre was full?

Broadly in agreement

Also makes sense to reel in the tax while the landlords can still afford to pay it, before the relentless drip drip of falling housing benefits income and slowly rising interest rates suck them dry over the coming decade

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HOLA4410

~24Bn spent out a year on Housing Benefit and ~2Bn back from BTL in Tax. Wow, what a bargain for the Tax payer!

I'd be surprised if it's even as much Tax as that all told, after all the other props and subsidies. Still a huge net drain on the countries finances.

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HOLA4411

.....the Telegrapper states "They are helped by low mortgage rates, driven down in part by the Government’s Funding for Lending initiative"....but this funding applies to OO's only ...therefore this is not possible.... :rolleyes:

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~24Bn spent out a year on Housing Benefit and ~2Bn back from BTL in Tax. Wow, what a bargain for the Tax payer!

I'd be surprised if it's even as much Tax as that all told, after all the other props and subsidies. Still a huge net drain on the countries finances.

All land rent is a state handout. Landlords paying tax is like the queen paying tax.

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