Reply to: The boom continues unabated

[Sockpuppet]

IF HMRC change the rules on mortgage interest being tax-deductable for BTL, THEN we will see a crash.

Wait untill they back date is 6 years. Doomed I tells ya!

[hugebrain]

The big problem is that taxing BTL landlords until they can't afford it any more may cause a crash in the housing market leaving lots of people with negative equity.

As the housing market is the only thing keeping the economy bouyant right now is that really something he's going to want to do?

Depends how much he hates the Blairs I suppose...

[Ardesco]

The big problem is that taxing BTL landlords until they can't afford it any more may cause a crash in the housing market leaving lots of people with negative equity.

As the housing market is the only thing keeping the economy bouyant right now is that really something he's going to want to do?

[Bagpuss]

All your property is ours

[King Cnvt]

BTL landlords should be taxed till they squeak

I have a sneaking feeling that a certain GB thinks the same thing. Watch this space....

[Ardesco]

Everybody in the country can take £5k tax free, thats how a personal tax allowance works.....

[hugebrain]

But in that case you have no income.

That's the whole point. The scam works by disguising income as capital gains. I suppose they can take 5K as tax-free income, the same as contractors.

[Ardesco]

Actually, Landlords can avoid paying tax altogether (simply by expanding so that they always match interest payments to rent, then avoiding Capital Gains tax). They even qualify for lots of free money in grants.

I wish I'd realised this earlier so I wouldn't have wasted my time contracting.

But in that case you have no income and you are not paying off the principal balance. You are also royally screwed if you can't rent out your flats. This only works in the long term assuming that the value of your properties keeps increasing. If you ever get into negative equity you are in real trouble.

[andy]

Actually, Landlords can avoid paying tax altogether (simply by expanding so that they always match interest payments to rent, then avoiding Capital Gains tax). They even qualify for lots of free money in grants.

I wish I'd realised this earlier so I wouldn't have wasted my time contracting.

One of my mates made a property portfolio of £1.5million in just 6 years
He retired at the age of 32.

[hugebrain]

What they have forgotten to mention is that the income from the rent is taxed so the BTL landlords are paying tax anywayUnfair advantage my arse.

Actually, Landlords can avoid paying tax altogether (simply by expanding so that they always match interest payments to rent, then avoiding Capital Gains tax). They even qualify for lots of free money in grants.

I wish I'd realised this earlier so I wouldn't have wasted my time contracting.

[chicane]

BTL landlords should be taxed till they squeak

Sour grapes.

[Old Greg]

BTL landlords should be taxed till they squeak

And then taxed some more until they stop squeaking.

[andy]

BTL landlords should be taxed till they squeak

[Moscow Mule]

Unfair advantage my arse.

But it does have populist appeal - so it will probably come to pass under GB.

[Ardesco]

What a crap story.


They say that landlords pay the interest when house is empty, but as soon as it is rented out they don't pay any tax and that costs £2billion a year in taxes.

What they have forgotten to mention is that the income from the rent is taxed so the BTL landlords are paying tax anyway, if the rent doesn't cover the mortgage then nobody is loosing out on tax, the person renting is just getting into more and more debt.

Unfair advantage my arse.