Budget 27th October

[Richlist]

The date of the next budget was announced today......less than 2 months away.......27th October.

Just when you thought it was safe to go into the water........

I am expecting the results of all the spending reviews to result in bad news for the rentals market.

Let's hope I'm completely wrong. 😕😕

[kanrent]

9 hours ago, Richlist said:

The date of the next budget was announced today......less than 2 months away.......27th October.

Just when you thought it was safe to go into the water........

I am expecting the results of all the spending reviews to result in bad news for the rentals market.

Let's hope I'm completely wrong. 😕😕

More landlord bashing. 

CGT up

IHT up

tax tax tax tax

[Melboy]

I would be very surprised if CGT doesn't rise. What if the rumour is correct about a 1% tax on domestic property sales?    Quite possible I would say.

[Richlist]

Don't forget Wednesday is.....Budget Day !!!!!

[Melboy]

I wouldn't mind if everything was actually disclosed on Budget Day but more often than not some items are left out and revealed a week later and of course the precise details of the Chancellor's budgets are often left out.

Anyway I would say we are all in for an increase in the many taxes that the Chancellor has the opportunity to increase. I still can't get around the fact that thousands and thousands of diesel engine cars are only paying £30 for their road fund licence and I am paying 6 times that figure for the use of the same roads.

[Richlist]

I thought vehicle road tax was now based on CO2 emisions. Diesel emissions are generally lower than petrol vehicles so presumably that's why the taxes are lower. 

However the world has moved on since the tax bands were introduced and we now know that with diesel vehicles the problem is two fold:

* Its diesel particulates that cause more problems than CO2. 

* Some manufacturers under reported the true emissions levels of their diesel vehicles.

The use of Ad Blue in modern diesels reduces NOx.

In spite of all the negative press regarding diesels, where else am I going to get circa 60 mpg in a range rover without paying considerably more money for a hybrid version of the same vehicle ? The road tax is a tiny, tiny part of the overall running costs and is virtually insignificant when the increased fuel consumption is taken into account.

[Carryon Regardless]

The road tax being insignificant would depend on the age of the vehicle (it's value) and therefor the depreciation.

MOT's have become a new stealth tax. 000,s of cars are failing on emissions. While some might think that's good for the planet I would say that all the replacement parts used to restore a vehicle to it's more stringent emissions level means more pollution by many ways.

A personal example. My mpv Viano failed at .39 thingies. It was winter and the engine is overly complicated with emissions cr*p so I deferred getting stuck into it. I bought an E class estate, about as close to van capability as is available, to get me by. Being older it passed the MOT the day before at 1.49 oojah's. A lovely mo mo that served me for 9 months till I could remove Viano engine and replace all sorts of components to achieve .01 whatsits.

I don't believe my improved emissions will ever compensate the pollution of making, transporting and testing the new components, while I ran a car at nearly 4x the thingamajigs.

Anyway my take on the continual BTL onslaught. Mr little legs wants more of our money because he has spent so much. We are going to be hit harder and harder.

I believe there is a strategy to cause more LL's to depart this industry, that will effectively cause more home ownership. The theory of that is that it creates greater social responsibility and with it less anti social situations. So to hit our CG would contradict that. 

I've seen a suggestion that for the 1st time there may be a gentle introduction of a tax of sorts on all home sales. Easy to recognise that when that becomes phsycologically acceptable as a normal it can be increased over the years.

 

[kanrent]

In my adopted country as an expat I pay = to £25 Road tax a year, no mot for a 2.5 litre diesel pick up gushing out black smoke

[Carryon Regardless]

5 minutes ago, kanrent said:

In my adopted country as an expat I pay = to £25 Road tax a year, no mot for a 2.5 litre diesel pick up gushing out black smoke

I can only try and guess,

Greece?

[kanrent]

13 minutes ago, Carryon Regardless said:

I can only try and guess,

Greece?

Nope try again

[Carryon Regardless]

I'm assuming you've adopted a warmer European state, as is more common.

Well, I'm led to believe that Spain has a fairly stringent comparable MOT.

Don't know about France but assume it to be similar. And with German advanced efficiency I would 'guess' worse.

There is the likes of Albania, Macedonia, but they aren't common relocation destinations.

Although foreign Scotland is colder.

Bulgaria? But there 2 Hp means 2 horses.

 

 

 

[kanrent]

3 minutes ago, Carryon Regardless said:

I'm assuming you've adopted a warmer European state, as is more common.

Well, I'm led to believe that Spain has a fairly stringent comparable MOT.

Don't know about France but assume it to be similar. And with German advanced efficiency I would 'guess' worse.

There is the likes of Albania, Macedonia, but they aren't common relocation destinations.

Although foreign Scotland is colder.

Bulgaria? But there 2 Hp means 2 horses.

 

 

 

Tenant eviction for non payment of rent 24 hours 

Repossession of property normally 4 weeks

IHT  has a £1.2million threshold 

CGT only applies if the property is sold before 4 years

Tenants have few rights 

If they are unhappy with the state of the property they have the right to move out

VAT 7%

Its a landlords paradise 

Thailand 

 

[Carryon Regardless]

Oo er,

back in 2004 I converted lots of £ into Baht after seeing land available on Samui. It looked across at the big Buddah.

The idea of forming a co operative to allow a handful of Thai's to own my property was a bit of a worry.

We've enjoyed Bangkok a few times on the way in and out.

On the + side when I converted the Baht back I made a good few quids.

I wonder if life would have been better had I had the guts.

[kanrent]

8 minutes ago, Carryon Regardless said:

Oo er,

back in 2004 I converted lots of £ into Baht after seeing land available on Samui. It looked across at the big Buddah.

The idea of forming a co operative to allow a handful of Thai's to own my property was a bit of a worry.

We've enjoyed Bangkok a few times on the way in and out.

On the + side when I converted the Baht back I made a good few quids.

I wonder if life would have been better had I had the guts.

I've been here 20 years now but still kept property in the UK worst thing for me was the coward Cameron government bringing in CGT for non residents 

Awch

[Richlist]

Budget Day. 

The thing I don't look forward to is the Labour Party criticising whatever the Chancellor says. I could probably write the Labour Party derisory response now, before the Tory Budget is presented.

Labour, Greens, Lib Dems, SNP...Will all criticise whatever is presented. It will never be good enough, all they want to do is spend more of what we haven't got.

[Carryon Regardless]

Yes pretend opposition parties will pretend to oppose anything. We forget they exist if they don't.

But I'm trying to get my head around what feels like a new of money isn't a problem culture that seems to have developed through the pandemic. There are grants and monies being thrown around like sweeties and it will be the less off that will take the hit of having to repay it all through taxes.

"Here's £6k toward a new EV,"

"street charging will be made available at convenience,"

The lesser well off are being squeezed off the road while those with funds are being treated.

The result of the hike in minimum wage will be interesting. Is this progressive? Will the businesses having to pay this just claw it back through increased pricing? Will it result in less jobs?

Is Sunak intelligent or merely creating future issues for another? 

[Melboy]

I watched the budget.  ☝️  I must have missed something.  😅

( Don't worry over the next 4 weeks items that are popular will slip out to the National Press about increases)

[Melboy]

I, like may landlords looking to perhaps sell their rental were watching for any changes to CGT.

It does appear some common sense has been applied here and that faint glimmer of common sense has at last prevailed in this Government in the fact that private landlords are essential in providing homes for those who prefer to rent rather than buy their own property.  About time too I say.

https://www.thisismoney.co.uk/money/buytolet/article-10136793/Budget-2021-Landlords-extended-deadline-pay-CGT-bill.html

[Carryon Regardless]

Maybe, I can see that he is unable to apply that sort of tax by stealth but other measures 'against us' can be and have been.

Individually the changes to our operating what used to be our business, but is increasingly not, looks reasonable. As a whole they are drastic and there are now so many tripping hazards that a tenant, with Shelter style assistance, is likely to always beat us in a court room. Then there are the legal expenses that are not only our own to be afraid of.

No change to CGT ignores that we used to have an attractive CG set up that encouraged investment. The main and very obvious change already is that we can not roll over our profits into another investment. The effective result is that if we gain a capital profit then at sale it's far more likely we are not going to invest that into another venture. The country suffers because of that as in my case, and others I suspect, that is the time to naff off to more attractive locations, Thailand might well be that place.

I suspect that Sunak has no issues with causing an exodus of landlords,but it needs to be in a measured way.

The article suggests that a rise in CG would cause a mass (fast) exodus. That assumes that the CG change would be with ample warning to dispose of our properties and beat 'a' deadline. If there were a mass exodus than values fall, there becomes a glut of properties competing for sale. The deadline then looks to be passed by many.

The greater issue might well be that most would attempt to sell empty properties. The 'fast' loading on local authorities would be a serious backlash. Of course the courts are well behind so our actually being able to legally repossess is more difficult these days anyway. The overburden on that so called charity Shelter would be a pleasure to witness.

[Carryon Regardless]

Please, please, contradict my views.

Forward opinions and assumptions.

I'm in the process of strategizing our future but because so much is difficult to forecast and so much has become complex with continual changes it is difficult.

 

I had developed a 5 year plan but I'm not sure it applies now.

At some point I must choose to follow the plan or amend, others views can be more than useful.

[Richlist]

I thought it was unusually quiet everywhere the day after a budget ......so I guess people are not to dissappointed.

* I had missed the 30 day extension to CGT payments. I don't understand why some have a problem paying within 30 days. I sold one end of July and managed to pay a shed load of tax within the 30 day timeframe.

* I think it's inevitable, given that there are financial demands from everywhere, that CGT will eventually rise. It may be done in small increments over the coming years but anyone with a 10 year plan would do well to factor in CGT rates well above the 18% & 28%. Alternatively landlords could move permanently to any one of the approved countries which doesn't charge CGT on worldwide assets......warning, some of those countries don't look particularly attractive in other respects ! 😁😁

* I'm pleased there is a plan to tax developers to create a fund to pay for the cladding. I feel very, very sorry for anyone trapped in a property they cannot sell because of the cladding. I still think it will take 3-5 years to fully resolve the issue but today We can see a little bit more light at the end of the tunnel. I'm glad I'm not affected.......and but for the grace of God, it could be any one of us.

[Melboy]

On 10/25/2021 at 7:18 AM, Melboy said:

I wouldn't mind if everything was actually disclosed on Budget Day but more often than not some items are left out and revealed a week later and of course the precise details of the Chancellor's budgets are often left out.

 

  Ahem!  😀       

Smokers feel the pinch: Pack of cigarettes goes up by 88p to £13.60 TODAY after Chancellor hiked tobacco tax.

 As far back as I can remember (and that's a long time) the Chancellor would always announce beer and fags tax increases in the Commons on Budget day. Anyway I have never smoked since I was about 20 so I don't really care.

£13.60 Wow!!  The last time I bought cigarettes a packet of 20 Embassy was 3/6d ......about 18 pence.

[Richlist]

Is that right ? Blimey.....

A bottle of Whyte & Mackay scotch in Tesco is £12.

Now I haven't smoked for a long, long time but I don't ever remember a packet of fags costing more than a bottle of scotch.

It's enough to turn you to drink !

[Carryon Regardless]

But if you were a 20 a day chap you would have passed the cost of ciggy's by the 2nd bottle.

[Melboy]

I can understand now why the cigarette smugglers are earning big bucks.  It was about 5 years ago not far from my location that the police discovered a large barn on a remote farm producing cigarettes of all brands and with an output more than a WD & HO Wills tobacco factory.  At £13 for 20 it has to be a worthwhile smugglers choice.