Extra tax for landlords

[Another2356]

Here is the rub, I earnt my money through PAYE and paid tax, I then invested what I earnt into property and now my investment is being taxed again but at a higher rate of tax! This does not feel fair and whilst in the past I’ve provided property at below market rates, moving forward I will not. Adjustments will now be made and hence again tenants will be impacted. Over the last 9 years, any rent increases I have made have simply covered the extra cost of managing a rental (tax, regulation & maintenance) my net profit has not increased, although the rents have. It’s the government who are creating the rent increase problems.

YABU I’m afraid. I say that as someone who has multiple properties and has been massively disadvantaged but his and other changes the government has made to property income. The government is, quite reasonably, trying to make property cheaper for residents to buy. That’s fine. I get that. As it happens, we didn’t buy our properties as ‘investments’ and if he had some extra cash we wouldn’t buy another one, so I guess the policy is working…. Obviously what will really fix the problem is supply, but they don’t seem tk be doing a great job there.

There’s little economic justification for second homes but Airbnbs are a bit different of they bring in tourists who spends money and support the local economy. I appreciate you might be ‘local’ but if you live in a tourist area (which it sounds like you do) then it’s not really as simple as stopping Airbnbs because that would be quite impactful for your local economy.

No it wouldn’t @schoolfriend. We are a rural community whose main industry is farming. All the landlords, tourists and Airbnb bring is congestion - it is not a significant contributor to the local economy and it just forces local families away because there is no housing stock left for us to buy.

I have some houses in my name, a couple between DH and me and some bought through ltd company. I also charge a little below market value to keep good tenants I like. Once the additional NI comes in I shall simply increase the rents of houses in my name to cover the additional costs. I am sure tenants will be happy with RR.

My hear bleeds too.
Poor them, having to pay the tax that is due on the profits arising from investments.
Just like anyone else has to pay tax pay the tax that is due on the profits arising from investments.

In area I buy my btl houses there are about 300 for sale. Plenty for people to buy if they have a deposit and pass affordability multiplyers. Some have been on the market for 6 months or more like last house I bought. Loads of time for locals to buy if they so wished but not in aa area of outstanding natural beauty, just a northern city.

I don't understand these double taxation claims.

If I have a PAYE job and pay income tax, and use my pay after tax to buy a 20 quid bottle of whisky, I still have to pay the tax on duty on the whisky.

If I were to claim that is double taxation I would be laughed at surely ?

LL's already pay tax on their income. Now they are being charged NI too, on top of the tax and NI they pay on their salary from their jobs.

I think it’s fare everyone pays tax and national insurance from income from whatever source

If people are living off renting out then yes, they should pay tax and national insurance on it
man’s also on the lump sum gain when they sell

I speak as a former landlady

But ultimately that extra money that goes to the tax man is just passed to the tenant

All taxes on businesses cut into profit and fall back on salaries
Im afraid