| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Warning from the Bank of England | |
| Posted by: | Adrian Irving | |
| Date/Time: | 16/07/15 09:55:00 |
| Claire, Copied and pasted form an industry rag. Osborne says buy-to-let landlords have an advantage, because they can offset mortgage payments against income. That has encouraged the growth of buy-to-let mortgages and the Bank of England has warned against this. Osborne says he wants to level the playing field between home owners and BTL landlords. Mortgage tax relief for buy-to-let landlords to be restricted to the basic rate. This will be phased in, he says. In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings. Opinion: For long term investors this could encourage investors to acquire BTL’s through a limited Company where all interest will be allowable againnst tax and where corporation tax rate is planned to fall to 19% from 2017 and 18% from 2020. One major consideration will be the attitude of lenders who tend not to like lending to limited Companies for BTL investments or charge higher rates for the commercial debt. The "Rent a Room" tax relief will be raised to £7,500 next year. From 2017, there will be £175K allowance for inheritance tax in addition to the existing threshold. The allowance can be transferred between spouses. You can now pass on £1million to your children FREE of income tax! NON-DOMS Non-doms with U.K. residential property will now pay the same tax as everyone else. Permanent non-dom tax status is now abolished! New non-dom measures will come into affect in April 2017. British people should pay British taxes in Britain, and now they will. |