Tracey Forest

Malumba It wasn't a jump in CGT it was a cut for all except individual private landlords and hedge funds.

Hi Burbage I can't really comment on the rattling of a two month notice bit as I've never experienced that either side as a renter or a landlord. I'm aware that there is a distinction between the private owner and the individual private landlord but this is about the distinction between the private landlord and the corporates. It's fair to ask why all private landlords didn't incorporate at the outset but this is just the way it happened for a lot of people back in the eighties and nineties. Had we known they'd be such a disadvantage on me as an individual I would have incorporated back in the nineties. I've paid tax as an individual for over 17 years on my rental property which has been a higher rate than a corporate. There's also a higher rate of tax to come. The 233% on zero I?m talking about is as follows; In 2015/2016 ? Income of ?182,000 ? Expenses of ?50,000 ? Mortgage interest of ?117,000 ? Profit is ?15,000 ? Effective rate of tax for a higher rate tax payer is 40% especially as a lot of us work In 2020 with the new rate of tax and with the same figures profit would be ?132,000. So an effective tax rate of 233.7% on zero profit. Corporates would be paying 15% if their tax remains the same. So we have two tax rates within the same industry. This is unfair. If as you say I?m ?rattling a tin? ultimately it certainly isn?t for lawyers.

Hi DaveR The papers are still with a court lawyer and are yet to be put before a judge for a decision on permission. We pushed for an estimated timeframe as we're hoping that we'll get permissions before the court?s two month summer recess. But the court office refused to be drawn on giving us likely timings. We can do no more at this time.

Hi Slad and Partner I haven't made any kind of assumption about your mortgage being high LTV. If the increased tax does become payable you'll be paying tax on all the rental income and you won't be able to offset the mortgage payments. So whether its high loan to value or not the tax may still be payable.

Hi Slad and Partner I've looked back and you've said you have a significant mortgage on your BTL so at this point you'll probably not be paying too much tax because of it. But I'm sure you're aware that you'll be paying tax on all your property income by 2020. So you'll be paying tax on no profit if your mortgage remains significant. You'll also pay a higher rate of CGT because private landlords have been excluded from the cut they've made for other businesses. The increased taxation on landlords was trialed in Ireland some years back. Rents hit the sky and because of the financial hardship it caused to all concerned it was scrapped. It took another 3 years before rents were affordable again. So it will have a huge impact. The funding is pledged donations. It's there for the whole matter to be decided - it's not just there for permissions - so unused pledges won't be transferred. The NLA and the RLA along with smaller landlord associations around the country have pledged contributions. Some letting agencies have come forward with generous pledges and landlords have pledged heavily because of the impact the increased tax will have. I can get one of the guys to contact you if you'd like to know more.

Hi Jules-and-Boo Right to buy is a government initiative not a private landlord one. Agencies increasing rents is something you'll have to take up with the agencies. It's the same with sales property, the agency increases selling prices. The tax on overseas investment isn't something within our control. Private individuals already pay tax on profits - HMRC treats them as a business but with the increased taxation some individuals will be paying tax on a loss. A lot of sole traders borrow to build a business and offset borrowing costs from their profits. Is it then ok to say to a hire company for example that they can't offset their borrowing?

Hi Slad and Partner Where do you think a 'free ride' comes into this? Can you explain the term you've used because I don't understand what you mean. What free ride are you getting as a btl private landlord? Secondly the funding raised isn't to cover permissions. It's to cover the lawyers fees. We know where the funds have been raised so so if we don't get permissions it won't be transferred - the total you see is pledged donations.

A fair assessment Loz thank you for making your thoughts known.

Thanks rendalharris - you make no mention of the fairness of the tax but you do demonise the private landlord. I would be interested to know if your experience with renting was from corporate or private. Speaking as a renter I've rented from both corporates and private landlords and the private landlords were the ones who communicated fairly and freely.

Further I'd like to know if buy to let landlords reading this thread are affected by the increased taxation on private individuals. If it does affect let me know if you'd like the information provided by the tenant tax summit in June 2016. I'm happy to mail you a copy.

Apologies to all It's permissions the case is waiting for.

Why not - they were living and breathing - what's a genuine example to you rendalharris?

We're not arguing for tax free profit Jules-and-Boo. Many private landlords pay 40% as opposed to the 20% that corporate buy to let landlords pay. We're not happy with having to pay up to 233% tax on a zero profit. I've got the calcs if you're interested in seeing them. This is about tenants rights. My tenants stay in excess of 6 to 7 years. A lot of private landlords want tenants to stay around and build a good relationship with them. It's the corporates you need to be careful of. They're the ones with a close eye on the most recent rent hikes.

Me for a start and a lot of the landlords who attended the tenant tax summit in Kensington early June 2016. Serious private landlords who want to make a difference and do make a difference. I don't know what years you're talking about when you rented but certainly since the deposit schemes were brought in there's been a major shift for the tenant and the landlord something I'd have liked to see back in the day when I rented during the eighties and nineties. There's so much more protection now that we can only welcome it. Makes for a fairer hearing on both sides.

We're waiting for the go ahead because that's what we have to wait for. The CPS is there to decide whether we can go ahead. This is the case in criminal law as well. I do understand what's going on Slad. I would think from your response that you are unencumbered. As I said in my original post - this is more about being able to offset borrowing as a business as an incorporated company is allowed to do in the years to come.