Should be outlawed in my opinion, you can essentially own multiple properties and have next to no personal liability because instead of ‘tom smith’ as the owner it’s ‘smith property Ltd’
I’d have thought the stamp duty surcharges and effect of corporation tax going up to 25% would offset the benefit of mortgage interest being fully tax-deductible.
Residential housing should not be for profit. It’s sad that that’s a radical view point..
What a person I know did…
* 1) got two medium sized comapnies (circa £1m turnover each)
* 2) get a “bounce back” loan for each one = 100k (even though no problem in pandemic)
* 3) take out a directors loan = 100k
* 4) setup a new ltd company with 100k
* 5) buy two properties for rent
Somebody in r tories told me there ain’t loads of houses available cuz of how many to rent there is.
And they say there is no slavery in the modern world….
There needs to be a limit to how many people properties that people can “own”. Artificial inflation running rampant. Selfish money grabbing cunts.
At some point the UK is going to have to contend with the fact that driving up property values and rent is basically hollowing out the entire UK economy. Discretionary spending? No thanks, spending it all on rent. Start a small business (absolute life-blood of our economy) sorry, can’t, can’t afford the rent or business rates. It’s such a drag on productivity that it’s slowly strangling the whole economy. Simple solution, massively relax planning law allowing way more land to be developed, driving down prices, establish a fund for councils across the UK to build 300k new houses each year (kept as council housing). Massively increase renters rights, and put in a real regulator with teeth to fine landlords and hand over properties to tenants in situations where the landlords are failing to meet their obligations. I’m sure all those plucky entrepeneurial landlords will find some other scam to run.
One thing I love about Spain is that their equivalent of council tax is payable by the landlord, not the tenant. Logic being that the landlord gets benefit of residential maintenance, and the tenant needs to save up to get on the property ladder. Hard to think of a better change to introduce to the UK system to help the worse off. Please spread this idea if you support it.
Maybe I am being nieve but I strongly beleive that property should only be allowed to be owned by a person not a company.
Buy to let companies do not generate economic growth.
Sorry, this housing crises we keep talking about, could there be a link …. 🧐
The tax rules have changed over the past 5 years or so forcing people to move property into companies to get the same tax allowances. This was a deliberate move by the government.
And the mystery of diminishing housing supply continues unabated
Landlords aren’t the big issue with housing. It’s the lack of houses. Government needs to build more.
I plan to do this next year rather than buy a house with my own risk. I have a holding company with another company below which I contract through. It allows me to me to move money around not be hit so badly on tax. Its a pain admin wise though.
That’s great numbers and all, including the tax rates…except, there’s no problem simply placing your company on the Isle of Mann, or one of the Crown Dependencies, and thus getting fuck all tax due.
They offer a 2 hour incorporation service…
Of course, they are all under the personal protection of the King, and technically ruled by advisement of the Privy Council, so we cant do anything about it and just have to continue to provide international access and security for them…
I say this as someone who has encountered several letting agents that have the property held by a company in the isle of Mann for tax purposes, despite all their business being done in the UK in reality.
17 comments
Should be outlawed in my opinion, you can essentially own multiple properties and have next to no personal liability because instead of ‘tom smith’ as the owner it’s ‘smith property Ltd’
I’d have thought the stamp duty surcharges and effect of corporation tax going up to 25% would offset the benefit of mortgage interest being fully tax-deductible.
Residential housing should not be for profit. It’s sad that that’s a radical view point..
What a person I know did…
* 1) got two medium sized comapnies (circa £1m turnover each)
* 2) get a “bounce back” loan for each one = 100k (even though no problem in pandemic)
* 3) take out a directors loan = 100k
* 4) setup a new ltd company with 100k
* 5) buy two properties for rent
Somebody in r tories told me there ain’t loads of houses available cuz of how many to rent there is.
And they say there is no slavery in the modern world….
There needs to be a limit to how many people properties that people can “own”. Artificial inflation running rampant. Selfish money grabbing cunts.
At some point the UK is going to have to contend with the fact that driving up property values and rent is basically hollowing out the entire UK economy. Discretionary spending? No thanks, spending it all on rent. Start a small business (absolute life-blood of our economy) sorry, can’t, can’t afford the rent or business rates. It’s such a drag on productivity that it’s slowly strangling the whole economy. Simple solution, massively relax planning law allowing way more land to be developed, driving down prices, establish a fund for councils across the UK to build 300k new houses each year (kept as council housing). Massively increase renters rights, and put in a real regulator with teeth to fine landlords and hand over properties to tenants in situations where the landlords are failing to meet their obligations. I’m sure all those plucky entrepeneurial landlords will find some other scam to run.
One thing I love about Spain is that their equivalent of council tax is payable by the landlord, not the tenant. Logic being that the landlord gets benefit of residential maintenance, and the tenant needs to save up to get on the property ladder. Hard to think of a better change to introduce to the UK system to help the worse off. Please spread this idea if you support it.
Maybe I am being nieve but I strongly beleive that property should only be allowed to be owned by a person not a company.
Buy to let companies do not generate economic growth.
Sorry, this housing crises we keep talking about, could there be a link …. 🧐
The tax rules have changed over the past 5 years or so forcing people to move property into companies to get the same tax allowances. This was a deliberate move by the government.
And the mystery of diminishing housing supply continues unabated
Landlords aren’t the big issue with housing. It’s the lack of houses. Government needs to build more.
I plan to do this next year rather than buy a house with my own risk. I have a holding company with another company below which I contract through. It allows me to me to move money around not be hit so badly on tax. Its a pain admin wise though.
That’s great numbers and all, including the tax rates…except, there’s no problem simply placing your company on the Isle of Mann, or one of the Crown Dependencies, and thus getting fuck all tax due.
They offer a 2 hour incorporation service…
Of course, they are all under the personal protection of the King, and technically ruled by advisement of the Privy Council, so we cant do anything about it and just have to continue to provide international access and security for them…
I say this as someone who has encountered several letting agents that have the property held by a company in the isle of Mann for tax purposes, despite all their business being done in the UK in reality.