Wednesday, July 25, 2007

Interesting reading in the Gordian

Everyone is entitled to a stake in the nation's soil and bricks

"Cooper will urge councils to use their 2006 powers to stop the buy-to-leave-empty market, where investors find the value grows more by leaving property pristine, so whole blocks are sometimes built, sold and left. She will urge councils to chase owners of any property empty for more than six months and not on the market. What of buy-to-let? There is nothing wrong with landlords renting out, since it still houses people. But the rush to use housing as investment has inflated prices. (A whole Doncaster street was bought with one City bonus.) Will Cooper stop the unfair tax incentive that lets landlords charge their mortgages against profits? That, says the government cryptically, is a matter for the budget, but it should be done in order to cool speculation."

Posted by confused76 @ 12:07 AM (537 views)
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7 thoughts on “Interesting reading in the Gordian

  • Why don’t they just use fiscal measures (i.e. taxes?).

    AND ANYWAY I WANT MY FLOODGATES BUILT FIRST even if I don’t want to pay the tax…

    Love Ex Londoner living next to a water view, in the Thames Valley after spoiling everybody elses environment, (aged 13 and a half).

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  • Environmentalspoilerneedingfloodgates. . . . says:

    Yvette.,

    Is that the same Nimbyism by the way that Nick Raynsford had when he was a Non Executive Director of Home Track and brought in HIPS ?

    Or, is that just self interest?

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  • “So how do you calm the overheated housing market? First, build, build, build.”

    No – raise, raise, raise interest rates. Much more effective, far less bureaucracy and although there would be less “smile for the camera” potential for Ms Cooper, it is what created the housing boom in the first place.

    “Will Cooper stop the unfair tax incentive that lets landlords charge their mortgages against profits? That, says the government cryptically, is a matter for the budget”

    In other words then, no. The government will continue to subsidise speculators to the detriment of young families desperate to house themselves.

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  • dohousescrashinthewoods says:

    Weird question, on the suject of tax advantages, if I set up an offshore company that buys UK property and rents it back to myself, can I cut my tax bill?

    It’s been puzzling me for a while. Any views? Could be one way to own property which might explain some of the unyielding support for prices.

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  • DHCITW,
    No you can’t. Rental is not deductible from your individual income tax.

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  • dohousescrashinthewoods says:

    Of course, thanks. You’d have to pay into the company the value of the mortgage, repairs, etc. for the company to float and, although the company might not pay any tax, you are paying in to it out of taxed income, so it’s at best a no-win (and, if any tax liability did crop up you’d be paying tax twice!).

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  • dohousescrashinthewoods,

    non-doms certainly pay next to nothing with similar structures, and then there’s the private equity
    boys, the majority of which are in some mad off shore house purchase structure. Also, a lot of hedge fund companies given generous “loans” to employees who could never afford £850K+ flats
    in Chelsea.

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