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Landlords beware!

Covering Market, Trends, and Practical (but see LEMON-AID for Building & DIY)
Charlottesquare
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Re: Landlords beware!

#434184

Postby Charlottesquare » August 11th, 2021, 8:52 pm

Arborbridge wrote:
Avantegarde wrote:In what way are landlords taxed unfairly? The general attitude of many landlords seems to be that paying any tax at all is an outrageous affront to their God-given right to a reliable 4% yield on their "investment", with capital gains baked in, and cushioned all the way by tax breaks galore..


You have a really juandiced and loaded attitude towards landlords, possibly from personal experience. But, as they say, one cannot judge the general from the particular.
However, here is another particular: I do not consider paying tax in an outrageous affront and neither do I have a God given right to any particular yield. To argue either of those would be completely absurd, and frankly, I doubt many landlords think like that at all.

In my view, BTL is a business, but the dice have been loaded against it by the government when the took away the ability to set interest against profit. BTL may the only business in which on does not pay tax on profit but on some mish-mash in between profit and earnings.
This is a really perverse thing to do, and AFAIK against all the usual principles of business taxation: there is no defensible rational reason for it, other than the government disliking BTL. I guess the motive was to squeeze out small landlords in favour of big businesses run by friends of the Tory party, Johnson and Jenrick (who both have cultivated big property companies) and at the same time score a few brownie points among the red wall voters.

Arb.


A business yes but certainly not a trade or profession. If you want a level pegging are you happy to suffer NI (class II and IV) on your profits as well as paying income tax? Residential property letting is different, done properly it carries lower risk than trading activities. I say this with over 20 years employment as an FD for a property group, we certainly take far higher risks re development (and often higher rewards) but for these, as an individual or partner, we paid higher combined tax /NI rates than a BTL landlord would do.

UncleEbenezer
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Re: Landlords beware!

#446231

Postby UncleEbenezer » September 29th, 2021, 11:13 am

Arborbridge wrote:
didds wrote:Bottom line - when you earn 19K a year you arent buyiong anywhere. Except as suggested if you live in the right place. and have that 19K job whilst living there


One has to wonder if society ought to be encouraging someone earning £19k to buy a property.

It wasn't so in the past. Pre-Thatcher there were some really solid houses available to rent at low cost for families, which got sold off and were not replaced. Absolutely tragedy.
Arb.

Some, but not enough to go round. If you failed to win that lottery, you were in a far worse position than young people today.


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