Buy to lets and paying their fair share

[milanbenes]

http://www.telegraph.co.uk/news/main...30/nrent30.xml

Buy-to-let landlords were warned yesterday that they could face reprisals from the tax man over their failure to pay enough tax on their investments.


Revenue & Customs can claw back unpaid tax from as far back as six years ago


Officials from the Revenue & Customs department warned that an estimated 80,000 landlords could be liable to pay extra tax on their buy-to-let rental income - many because they have incorrectly assumed that they can offset the full cost of a repayment mortgage against their profits for tax purposes.





Milan.

[Hart-floot]

http://www.telegraph.co.uk/news/main...30/nrent30.xml

Buy-to-let landlords were warned yesterday that they could face reprisals from the tax man over their failure to pay enough tax on their investments.


Revenue & Customs can claw back unpaid tax from as far back as six years ago


Officials from the Revenue & Customs department warned that an estimated 80,000 landlords could be liable to pay extra tax on their buy-to-let rental income - many because they have incorrectly assumed that they can offset the full cost of a repayment mortgage against their profits for tax purposes.

Milan.

Any this in the Telegraph today too... Is BTL starting to come apart now?!?


http://www.telegraph.co.uk/money/mai...8/bcnbuy08.xml


Rents soar as rate rises squeeze buy-to-lets
By Edmund Conway, Economics Editor
Last Updated: 11:03am BST 30/05/2007

Taxman warns landlords over buy-to-let bill
Buy-to-let: is it still worth the gamble?
New build is worst buy-to-let investment, experts warn
Home Information Packs (HIPS): the facts, the news & the views
Landlords are ratcheting up rents at the fastest and most sustained rate in almost a decade, as those involved in the buy-to-let market struggle to make money from their investments.


Landlords are having to squeeze more money out of their tenants


The revelation came as economists warned of growing cracks in the property investment sector, where the gross yields landlords can hope to make are now falling at the fastest rate in three years, even before the impact of four increases in interest rates is taken into account.

[milanbenes]

doomed etc


wonder what the resident buy to let experts think ?

Milan.

[Bagpuss]

There is no value left from an investment standpoint, as soon as people started subsidising the repayments (hoping for free money) that was obvious.

[Hart-floot]

doomed etc


wonder what the resident buy to let experts think ?

Milan.

They should have put their money on the Shanghai stock market

[wendigo100]

Officials from the Revenue & Customs department warned that an estimated 80,000 landlords could be liable to pay extra tax on their buy-to-let rental income - many because they have incorrectly assumed that they can offset the full cost of a repayment mortgage against their profits for tax purposes.

It doesn't affect those on interest-only mortgages.

But how many BTL landlords are there, if 80,000 is only those who might be affected?

[Causus Deli]

It doesn't affect those on interest-only mortgages.

But how many BTL landlords are there, if 80,000 is only those who might be affected?

I have a small portfolio and have been hearing these scare stories for years. Most do it on interest only anyway. I haven't bought for 2 years now and will wait until things settle. They still seem to be making me 5-10% a year and on a large total value that's a few bob. As I've had some of them for many years that's lots of bob. We have quality places that would not be suitable for asylum seekers (strange thinking indeed), we ask 700 on a 1-bed flat and get it easily, with a class place one gets class people.

[Ardesco]

It doesn't affect those on interest-only mortgages.

But how many BTL landlords are there, if 80,000 is only those who might be affected?

If they are affected it serves them right for not having thier tax affairs in order and not doing thier homework before becoming BTL landlords.

[pickle]

I have a small portfolio and ....As I've had some of them for many years that's lots of bob.

So Im intrested. If you have held these assets for a while now, when do you plan to sell up? If prices start to drop will you try and cash in on your capital gains or hold on, collecting the rent cheques even as the value of the portfolio goes down?

As you have had the properties a few years, your rent probably more than covers the mortgage (not so for newer investors), so Im guessing you wont be a forced seller even if price do go down.

Im not sure if I think the BTL lot will rush for the doors thus exagerating any downturn/crash, or see increasing yields that price drops would bring as an oportunity to buy more properties, thus stopping any price correction short.

[BlasterBates]

But if prices drop your 5-10% would soon dwindle, as capital appreciation is an important in the calculation.