You are reading a single comment by @hugo7 and its replies.
Click here to read the full conversation.
-
On the flip side, what if you own a property but want to move to work somewhere else or move in with a partner? With a 90% tax on rental income it would be pretty much impossible to relocate temporarily.
People would just do it under the table. Or you adjust the rules on absentee landlords, or whatever it's called by HMRC.
This is the boat we are in. Currently making a small loss if we weren't returning, next year it would be a slightly larger loss due to the tax changes.
Granted our original mortgage was never intended to be for a BTL investment, so it's not the best benchmark but I'm not sure sure how many people could go out today and make a decent return on BTL.
EDIT : obvs not doing anything under the table, as it isn't worth it.
hugo7
JWestland
That's already starting to an extent, I know a number of people who have been put off renting out their properties due to the new tax rules coming in. It isn't that profitable if the crazy equity gains aren't there.
The issues are whether the lack of flexibility will hit people. Will these local authority lets cover 3/6 month lets? Will they be in places people want to live? What about places out of London where the demand for rented property is lower?
On the flip side, what if you own a property but want to move to work somewhere else or move in with a partner? With a 90% tax on rental income it would be pretty much impossible to relocate temporarily.