"Anger among Britain’s two million buy-to-let investors is growing as more of them understand how they are about to be penalised by tax changes currently passing through Parliament.
The complex new arrangements, announced in the summer Budget, will hit only private landlords with mortgages. Companies and cash-rich landlords with no mortgages are left unscathed.
Thousands of middle-class buy-to-let investors – many of whom bought one or two properties as part of their pension planning – have written to their MPs asking for the legislation, part of the Finance Bill 2015-16, to be softened or scrapped. The Bill is awaiting its second reading.
Many landlords are taking other steps. These include raising rents ahead of the changes, paying down mortgages, selling properties or establishing companies as a way to avoid the tax (see Tax change in brief, below).
There is little indication, however, of any change on the part of the Government. And as the Bank of England is currently considering tighter regulation of buy-to-let, many now feel there is too much uncertainty to make further investment attractive.
Mrs Large, 46, has been buying to let for 19 years. Mr Large, 41, quit work as an IT consultant in March so he could join her in working full-time on their property business.
Cash buyers are also untouched by the tax change, and the Larges believe many non-local cash buyers will come into the market. “Tenant demand is overwhelming here, often from people who do not want to buy. You can buy a two-bedroom property for £75,000 and let it for £475 a month. That’s attractive to cash-rich investors who don’t need mortgages.
Buy-to-let lending is profitable business for Britain’s lenders.
Most lenders are now considering developing new mortgages for landlords who set up as companies. David Whittaker of landlord broker Mortgages for Business said mortgages available to company borrowers currently comprised 13pc of the buy-to-let mortgage range.
“The mortgage market was well prepared for the Chancellor’s grab on landlords’ tax relief,” he said.
He warned that the average interest rate for limited company mortgages was “slightly greater” than for traditional buy-to-let mortgages, although “these rates could come down”. "
Source: ‘Buy-to-let tax will cut our income by 25pc.' How much will YOU lose? - Telegraph
I wonder how many of those 2 million voted for Tories?
Lots of new Ltd will be open and Gideon will celebrate success of his business encouragement strategy
The complex new arrangements, announced in the summer Budget, will hit only private landlords with mortgages. Companies and cash-rich landlords with no mortgages are left unscathed.
Thousands of middle-class buy-to-let investors – many of whom bought one or two properties as part of their pension planning – have written to their MPs asking for the legislation, part of the Finance Bill 2015-16, to be softened or scrapped. The Bill is awaiting its second reading.
Many landlords are taking other steps. These include raising rents ahead of the changes, paying down mortgages, selling properties or establishing companies as a way to avoid the tax (see Tax change in brief, below).
There is little indication, however, of any change on the part of the Government. And as the Bank of England is currently considering tighter regulation of buy-to-let, many now feel there is too much uncertainty to make further investment attractive.
Mrs Large, 46, has been buying to let for 19 years. Mr Large, 41, quit work as an IT consultant in March so he could join her in working full-time on their property business.
Cash buyers are also untouched by the tax change, and the Larges believe many non-local cash buyers will come into the market. “Tenant demand is overwhelming here, often from people who do not want to buy. You can buy a two-bedroom property for £75,000 and let it for £475 a month. That’s attractive to cash-rich investors who don’t need mortgages.
Buy-to-let lending is profitable business for Britain’s lenders.
Most lenders are now considering developing new mortgages for landlords who set up as companies. David Whittaker of landlord broker Mortgages for Business said mortgages available to company borrowers currently comprised 13pc of the buy-to-let mortgage range.
“The mortgage market was well prepared for the Chancellor’s grab on landlords’ tax relief,” he said.
He warned that the average interest rate for limited company mortgages was “slightly greater” than for traditional buy-to-let mortgages, although “these rates could come down”. "
Source: ‘Buy-to-let tax will cut our income by 25pc.' How much will YOU lose? - Telegraph
I wonder how many of those 2 million voted for Tories?
Lots of new Ltd will be open and Gideon will celebrate success of his business encouragement strategy
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