Tuesday, October 18, 2016
Bleet.
Half a million landlords to be hit with 40pc tax raid under new rules
According to the National Association of Landlords, the new harsher tax rules will push the taxable incomes of around a quarter (440,000) of the UK's 2m landlords who currently pay basic rate tax at 20pc, above the higher-rate tax threshold of £41,786.
Posted by tom101 @ 11:41 AM (7429 views)
6 thoughts on “Bleet.”
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tom101 says:
“We now know that is complete tosh. The Government must look to amend these tax changes and minimise the impact on landlords and their tenants – something that could easily be achieved by applying the rules to only new loans written after April 2017.” Take their money not ours…..
i remember the 90`s says:
I see this as the right way a few landlords will be decent and look after their tenants but a lot don`t and hopefully this will force them to sell .
icarus says:
“landlords will face an impossible decision of whether to increase rents and cause misery for their tenants or to sell up and force their tenants to find a new homeâ€. Another option is Airbnb (who are already taking a substantial amount of rented property off the market), especially in London/SE.
enuii says:
In a successful economy like the UK more and more people become official wealthy as defined by HMRC rules every year, landlords should be celebrating this marvellous achievement in our glorious free market economy.
mombers says:
Well they don’t pay national insurance (most other self employed folk are subject to 9% but for some reason BTL is exempt). Someone on £11k has a marginal tax rate of 40.2% when you take employer’s NI into account so they’re doing bloody well to still be paying less than the working poor
britishblue says:
The housing market is different to other markets in that if a Landlord sells up, the buy to let house still remains in the ‘market’. This property it is either purchased by someone to live in or passed on to another buy to let landlord. So the number of properties for rental remain the same or are reduced by the sum of one. But if the rented properties are reduced by the sum of one, at the same time the demand for rental properties go down by the sum of one. The argument that rents would rise would only apply if the landlord decided to hoard his house and not let it out, thus reducing supply whilst demand remained the same. The rental level is set by a number of factors including what a tenant can afford to pay as well as market confidence. In Richmond upon Thames, rents are a good 10% down on what they were a year ago through the board from the starter rents at around £1600 a month through to £6000 a month.
A more likely scenario is that we will see the rise of the large professional landlord ( like in Germany). the low mortgage landlords will remain and the landlords with properties mortgaged to the hilt will be eliminated over time.