28 Jan 2016 2:42 PM:
Hi Eggcup
Any one needing up to date info on this tax grab and its consequencies should look on property118.com
A tax dreamed up by a geography graduate, no economic training what so ever.
Spreadsheets are available from above website showing interactive results of tax grab, income, expenses etc We havent increased any rents in over 8 years but are now informing tenants that annual increase will be levied to pay for this tax. This tax grab is touted as only affecting rich landlords paying higher rate tax, however as financial business costs are not considered a business expense the result will be a percieved increase in income of the amount of mortgage/loan interest payment. This will push many lower rate tax payers in to the higher rate of tax but with still having to pay the mortgage will have no money left to pay the new higher rate of tax. This is simple arithmatic.
Landlords only have rental income, with increased costs there will be no alternative but to increase rents or reduce maintenance. Or go bankrupt and have homeless tenants and rents rising even higher due to less supply of property.
The end result will be felt by the tenant. All tenants and landlords should be complaining to their MP about this tax grab and have it removed
Eggcup if you want more details PM me.
Cheers
Thread:
Retired landlords living in Spain who derive an income from buy-to-lets in the UK
--------------------------------------