The budget now rubbish it is

[Noras]

my post should read how rubbish is this budget!

So I will only get a state pension and income from an investment property for my retirement ( monies from an inheritance ) as I have looked after my disabled son. So the Gov have gone against me as ever.

But have they gone against the extremely wealthy or huge corporates that exercise price transfer re tax tax or use franchises/ loan agreements etc to legally avoid tax?

Nope.

I actually loathe this government now. They always shield the wealthy and go for the middle classes. Those with a bit of bank interest or a single asset let’s tax that more - easy pickings.

I'm a landlord and I'll be putting the rents up higher on my btl houses than I had intended to the day before the budget. I think other landlords will do the same. We all know that the interest rates will go up most likely next week and again after Xmas. I charge under market rates because I have good long term tenants but their rents will be going up significantly now.

I can see that if you never did any repairs, replaced any furniture or used any agency you could end up paying tax on 80% of your rental income. That’s hardly a common set up though, and nobody will be paying tax on all their rental income unless they don’t actually have a mortgage, in which case their position hasnt changed. It’s also completely wrong to say that the tax rate is 80 or 100%- the rate is whatever their marginal rate is plus 4% (so for a basic rate taxpayer that’s 24%).

How hypercritical that you criticised tax avoidance on the same thread where you spoke about how you intend to avoid tax yourself.

I managed my own houses to keep rents lower. DH does the accounts again to keep rents lower. The only thing I can legally deduct for is maintenance and repair bills and gas and electricity certificates.

The budget was poor. It didn't tackle the benefits bill. We should not be borrowing so much money leaving our DC and DGC to pay for it.

I listened to a podcast on this, from memory one of the main issues with the new rules (in addition to the additional regulation and tax, which makes letting more difficult/stressful for non-professional landlords), is that Landlords must now go to court to evict a tenant who refuses to leave (there used to be a paper only system), but that there is no additional investment in the court system, which mean that there are expected to be substantial delays.

Tbf to OP she did state she had a disabled son in her OP!

I think that’s her point. Landlords will sell up because of higher taxes and more regulations. She is right. I’m about to retire and DH and I were thinking of taking the 25% from both our pensions plus our savings to buy a small investment flat. We won’t bother now. The result will be fewer rentals available and it’s already hard to find a rental.

Have you been in receipt of benefits? Carers allowance and disability benefits? The money to pay benefits will come from people worse off than you. I can't see how you can possibly complain that you are being asked to pay some tax when you have a rental income. It will be taxed at the same rate as interest on savings.
FYI the top 1% of earners pay 29% of ALL income tax, the top 10% pay 60%. They are all very mobile and could live anywhere in the world. This "eat the rich" rhetoric is idiotic and has cost the country dear, as 100s have left after Rachel Reeves last budget. Just one of them had paid £330 million in tax the previous year! Now lost.
Corporations can also easily move their registered head office and pay tax in a lower tax jurisdiction.
I beleive this is a short sighted Goverment is causing massive damage but probably not for the same reasons as you.

It doesn’t. The fact that you are not buying a rental property doesn’t change the housing supply.

Yes I agree
We were only able to buy our house after an inheritance got us a decent deposit - we’d been saving and saving but just didn’t have enough.
The most worrying thing now is that the sort of house we rented for £800 a month is basically double that (if not more owing to the high demand!!!) and the average family would find £1600 a huge amount to find.
in Nottingham I know 2 people who have bought ex council houses and when they wanted to sell have contacted the council who nearly fell over themselves to “buy them back” at an inflated price, covering the costs and also the people avoiding estate agency fees. One colleague was buying a new
build that was delayed and the council said “don’t worry you can rent it off us until it’s ready” so they stayed for another 3 months at
mega cheap rent but selling them all off has created huge shortages for the people who need them most. I feel this needs to be stopped now.

Yes. And the increase in landlords exiting the market has had a huge impact on local housing shortages and homelessness which councils are legally obliged to sort out.

I didn’t see much in there to help incentivise growth. There is only so much you can raise through tax if you’re not simultaneously supporting business and the creation of jobs.

I know of several people in this position. It sounds like you know none.

Unfortunately renters will suffer because rents will rise to make up for the increased tax take by the government. Look what happened the last time they went after the landlords.

Presumably you receive benefits for your son, as you should, but you have an investment, and don't want to pay tax on it? Who do think should contribute to your child's disability benefits?

There are so many rules it’s hard to keep up sometimes but you’re talking about the removal of Section 21 for evictions.

Good landlords don’t routinely evict tenants - what a shocker. Bad landlords will ignore the new legislation and continue to turf tenants out, assuming they don’t know their rights.

hmmmm,

rubbish this budget is, young Skywalker

Alternatively they thought too much red tape and don't want to be a landlord, or needed the money or many kithe reasons

An alternative to investing in a property is investing in stocks/shares/bonds etc. You can do this even if you don't work for anyone, there is no reason a lump sum of money can't be used to invest in.a diverse range of stocks. However, lots of people prefer to invest in property because it's seen as a safe bet that is guaranteed high returns. Whereas a safe investment in the stock market might yield lower returns. On an individual level that's completely understandable. However it's only possible because the housing market is unbalanced. When everyone is rationally choosing to invest in property above businesses/shares that unbalances the economy further. And is also bad for growth because how the economy is meant to work is people invest in new/existing businesses and they grow and productivity, GDP go up. Investing in property doesn't bring any of the advantages to the economy (jobs etc) and also has the negative effect of forcing house prices up making it harder for other people to find somewhere to live. So then they have less to spend on other stuff further hurting the economy.

So from a sensible "managing the economy" perspective it absolutely makes sense to remove some of the incentives to do what the OP did. It doesn't mean the OP is bad or about punishing them etc. But it is sensible to (gently) disincentive it. Otherwise the whole thing collapsed dramatically later on which would be worse for the disabled son.

Oh here we go. Cue the whiny landlords 🙄. Plenty of people have to live on state pension alone, without owning a huge asset, so why shouldn’t you pay tax on it?

It doesn’t change the overall stock levels but it changes types of property. If you can’t afford to buy, your only option is to rent and you might be grateful for that extra house on the rental market.

After all, governments are fucking useless at providing housing.

I think it is a boring and not radical budget. The real test of whether the Burnham government is radical will come next year with the Spending Review and ten year plan.

You mean 'sitting ducks', I presume?

None of the tinkering the government has done today will help consumers.

The removal of the gas standing charge will get passed on through increased unit rates.

The tax rise on landlords will get passed on through rent rises.

The levy on the banks will get passed on through increased costs to customers or reduced lending to businesses.

Labour are fundamentally incapable of understanding how to make economies more productive.