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erranta

Buy-to-let Landlords - You're Nicked!

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http://investing.reuters.co.uk/news/newsAr...NA-DEPOSITS.xml

Thought this woz worth a punt as this question quite often pops up on HPC!

But whether the government likes to admit it or not, the new regulations will also act as a means of checking up on who is letting property and receiving rental income and whether or not they have declared this income.

The new Tenancy Deposit Protection Scheme will take effect from October of next year. And the government is using its introduction to collect information on landlords, including who owns rental property, the amount of rent received, the amount of the deposit and full details of tenant and landlord. Anyone failing to declare rental income is likely to find themselves being investigated by HM Revenue & Customs, possibly facing a fine, and a back tax bill.

GULP! :unsure:

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Criket this could make a big difference.

I've got a BTL but declare it all so am squeaky clean, but I bet a lot aren't in that position!!

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Not just future rentals, but it will open the book on previous rentals as well. How many LL's have not declared earnings over the last X years and will now come under scrutiny.

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This will be very interesting. I know 3 people with rental flats in London who do "all cash business".

I would love to know how many landlords are reporting earnings especially the ones who own their properties outright and rent direct.

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This will be very interesting. I know 3 people with rental flats in London who do "all cash business".

I would love to know how many landlords are reporting earnings especially the ones who own their properties outright and rent direct.

Yep!

This is gonna spoil many Christmasses this year!

Just imagine the Xtra FLOOD of houses coming on the market next Spring! :o

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there will be a shortage of supply

Prove your statement with UK 2006 rental projection facts and figures - otherwise more inflammatory tosh!

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I have just finished a 3 year Inland Revenue Rental Enquiry going back over 13 years - the client came to me over receiving a letter from the HMRC about his property business and undeclared rents.

It was not pretty and it was not cheap, after Interest and Penalties were added to the Income Tax bill.

So be WARNED.

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Guest Charlie The Tramp

Is it a pre-requisite for all HPC bears to have their SOH's surgically removed?

Ah, your ghost writer is on the boards. <_<

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Guest

Is it a pre-requisite for all HPC bears to have their SOH's surgically removed?

SOH = Sense Of Humour

Noooooooo..... I did my "MPC" joke with Elizabeth yesterday. I don't know if she saw the funny side of it though. In fact, I think she missed it and got a bit pissed off with me. But then you win some and you lose some. B)

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I have just finished a 3 year Inland Revenue Rental Enquiry going back over 13 years - the client came to me over receiving a letter from the HMRC about his property business and undeclared rents.

It was not pretty and it was not cheap, after Interest and Penalties were added to the Income Tax bill.

So be WARNED.

i know of a case which has been dragging on for years - the guy has about 10 properties and each time his SATR is submitted, Revenue and Customs take it apart!

it is costing him a fortune in accountancy fees... :lol:

as an aside, revenue and customs were recently going to launch a website & "free" 'phone number so that people can be "grassed up" with ease. this was to be accompanied by adverts in the press etc.

however it has been stopped for the time being due to lack of staff so i'm told- but watch this space! :o

gordon's black hole needs to be filled somehow! :(

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A life long friend of my father's has in excess of 100 rental properties and has been a professional landlord for over 35 years. He's always collected the rent directly off tenants with the assistance one of his mistresses.

I'll leave it to readers to derive for whatever reasons...

I'll shall ask the old man to enquire further when I next speak to him. ;)

Just think - some of these long-term landlords will have to pay THEIR tennants 'hush' money - should bring rents down even further! :lol::lol:

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Just think - some of these long-term landlords will have to pay THEIR tennants 'hush' money - should bring rents down even further!

Heck, if the landlord has be neglecting to declare their rental income for years, I guess their tenants could just stop paying rent at all: if the landlord turfs them out, they make a quick call to the Inland Revenue.

gordon's black hole needs to be filled somehow!

Indeed: and taxing BTL could be a gold-mine for a thieving scumbag like Brown.

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Heck, if the landlord has be neglecting to declare their rental income for years, I guess their tenants could just stop paying rent at all: if the landlord turfs them out, they make a quick call to the Inland Revenue.

Indeed: and taxing BTL could be a gold-mine for a thieving scumbag like Brown.

BTL is taxed - the same as any other income/investment.

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Guest horace

To quote from citywire....

LONDON (Citywire) - The government has opened a consultation on proposals on the new statutory Tenancy Deposit Protection scheme, which will affect virtually all buy-to-let landlords and will operate from October 2006.`

So HMG are undertaking `consultation on proposals` which will result in a law which `will operate from October 2006.`

That`s a remarkable Parliamentary time table.... 10 months. What do you think?

horace.

Edit to clarify

Edited by horace

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To quote from citywire....

LONDON (Citywire) - The government has opened a consultation on proposals on the new statutory Tenancy Deposit Protection scheme, which will affect virtually all buy-to-let landlords and will operate from October 2006.`

So HMG are undertaking `consultation on proposals` which `will operate from October 2006.`

That`s a remarkable Parliamentary time table.... 10 months time. What do you think?

horace.

LOL!

But just imagine the 'new strain'(sic) on the NHS - a massive rise in unexplainable heart palpatations, nervous twitches and muttering under the breath!

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Well I'm thrilled. All mine are 100% above board - so if a load of landlords give up - there will be a shortage of supply - so rents will go up.

Can't wait. shame it's not from 1st Jan.

Not necessarily: Another possible scenario is that the resulting flood of properties for sale as previously tax-dodging landlords dump their BTL's produces price falls in property, and a swathe of potential renters can suddenly afford to buy. The net effect could be that the demand for rented property stays much the same, so no shortage. Or indeed, when added to other effects, there could actually be a reduction in demand, and thus falling rents.

Falling rents, falling house prices, and possibly also falling IR's - a dream combo for many! Not for BTL landlords though.

Edited by Levy process

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SOH = Sense Of Humour

Noooooooo..... I did my "MPC" joke with Elizabeth yesterday. I don't know if she saw the funny side of it though. In fact, I think she missed it and got a bit pissed off with me. But then you win some and you lose some. B)

I didn't get particularly pissed off. I actually thought the internal content of the joke/site was quite funny but at the same time I thought you were calling me a bitch which I considered a little bit rude and in that kind of situation I don't bother to continue the conversation because I then conclude for a short amount of time until I forget about it, that the person is beneath me! but I don't get deeply emotional about it just that Manners Maketh Man in my opinion. :)

EDIT:

In terms of landlords, I actually care less about the tax (although this has got to be a benefit to the PAYE crowd like me) than I do about the fact that thieving landlords will no longer be able to steal another months rent for nothing (and often a better condition property) since it will be independently arbitrated now.

Edited by Elizabeth

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I bet some of the landlords will have to sell up to meet the back duties.

Even that might not work.

If LL has taken 85% LTV mortgages, then MEWed to put the deposit on more properties, there might not be sufficent cash from the sale(s) proceeds (after repaying the mortgage(s) to pay the CGT bill (which could be at 40% tax rate), let alone his Income Tax liability. The amount of the mortgage is irrelevant for the CGT calculation.

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This could finally be a smart way by the govt to engineer an hpc and thus affordable housing for a lot of us, without leaving their sticky mitts at the scene of the crime. Who could complain about an hpc brought about by making hard-working LLs pay their taxes, just like everybody else? Gordie might be a thi*ving g*t but I'd certainly vote for this one.

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  • 301 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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