Property News · December 10, 2016

Buy to let: ‘We landlords are being vilified’


With a lending crackdown and a massive tax hike due, many landlords could soon find themselves moving from profit to lossRob Hill is angry that his tax bill will go up £3,000 from April. Chris Cooper is furious that his personal tax bill will nearly double. Other landlords say that their effective tax bill will rise to 100%. As the buy-to-let market reels from last April’s stamp duty hike, and awaits the tightening of lending criteria starting in January and the steep increase in tax being phased in from next April, is the party over for Britain’s two million landlords?Hill has three rental properties in south-west London, but says landlords are “getting a bashing” from the government’s changes to the tax regime, accusing it of ruining the retirement plans of thousands of people. An estate agent himself, he has let out a flat and two houses in Clapham for the past 10 years, which earn him an annual rental income of £40,813 after service charges and letting fees. The mortgages cost him £13,770, leaving him with a profit of £27,042. Currently he is liable for 40% tax on this, so the bill is £10,816. Continue reading…

Source : theguardian.com
Read more…Buy to let: ‘We landlords are being vilified’

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