'I own 75 buy-to-let properties but I haven't deprived other buyers'

[NickFitz]

Does it not cease being a free market when it is targeted by government action which changes the shape of the market ?

There are externalities that affect the market, among which are such things as state taxation. If one of those externalities changes the shape of the market, the actors in the market have to adapt to those changes. If they don't want to adapt, they are free to leave the market. As this leaves a gap, others are free to enter the market to exploit that gap.

Note that state taxation is not the only externality that affects the market. Suppose some global blight drastically reduced the amount of lumber available to the building trade, thereby increasing the cost of building or renovation. That would also change the shape of the market, but in that case, they'd probably go bleating to the government asking for a handout to prevent their businesses losing money (and with this government, they'd probably get it).

If the tax had been reduced, would they be complaining that it was changing the shape of the market by making it too easy for them to make their profits? Yes, they probably would, because that would lead to increased competition.

Either way, they'd have to work harder until they'd stabilised their situation in a manner that suited them. I strongly suspect it's the business of having to work harder that really pisses these leeches off.

[MarillionFan]

There are externalities that affect the market, among which are such things as state taxation. If one of those externalities changes the shape of the market, the actors in the market have to adapt to those changes. If they don't want to adapt, they are free to leave the market. As this leaves a gap, others are free to enter the market to exploit that gap.

Note that state taxation is not the only externality that affects the market. Suppose some global blight drastically reduced the amount of lumber available to the building trade, thereby increasing the cost of building or renovation. That would also change the shape of the market, but in that case, they'd probably go bleating to the government asking for a handout to prevent their businesses losing money (and with this government, they'd probably get it).

If the tax had been reduced, would they be complaining that it was changing the shape of the market by making it too easy for them to make their profits? Yes, they probably would, because that would lead to increased competition.

Either way, they'd have to work harder until they'd stabilised their situation in a manner that suited them. I strongly suspect it's the business of having to work harder that really pisses these leeches off.

You worry me Fitzy. I never trust a man who can't be bought.

[vetran]

How is it a business, without any corp tax, business rates, employer NICs etc etc etc?

same as any other self employed business. Those are the rules.

[AtW]

Going from £80,000 p/a to £60,000 p/a does not constitute ruin

Ruin in life style for sure - it's a BIG drop, especially because in this case it can drop further to 40k or even 20k.

[AtW]

same as any other self employed business. Those are the rules.

So in your view, a sole trader model of business is acceptable for this chap with 75 (!) houses that he valued at £ 6 mln???

[meridian]

So in your view, a sole trader model of business is acceptable for this chap with 75 (!) houses that he valued at £ 6 mln???

Yes, in fact it's probably more preferable for him to have unlimited personal liability rather than shielding the properties in a trust or Ltd.

What other business model would you enforce, and why?

[AtW]

What other business model would you enforce, and why?

Ltd for sure to have legit expenses like credit interest reducing his tax liability. Ltd could have been sold also with 10% Entrepreneurs' Relief claimed.

There is only one problem with this - banks are unlikely to will have lent his company money.

[vetran]

So in your view, a sole trader model of business is acceptable for this chap with 75 (!) houses that he valued at £ 6 mln???

I would probably take advice, I imagine LTD will become attractive now.

[AtW]

I would probably take advice, I imagine LTD will become attractive now.

Banks won't like idea of mortgage being changed to Ltd.

[vetran]

Banks won't like idea of mortgage being changed to Ltd.

Banks will have to change won't they. They will like being able to charge 'commercial interest' though.

The most likely thing will be the Directors will guarantor the loan just as banks do with any other loan to a business.

Either that or all the BTLs will be sold to people with the cash on hand, I would very much doubt the renters will like them a Landlords.