Coronavirus Consent to Let Residential landlord and Taxes

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  • Jon66
    replied
    The government did not issue a ban on people moving house. It was and is specifically permitted under the act.

    Leave a comment:


  • jpkeates
    replied
    You can claim interest as an expense after next year, but it is limited to 20%.
    Only the portion of your income that is over £37,501 will be taxed at the higher rate.

    You can't move into a property occupied by tenants, unless they rent individual rooms with common areas and there's a room free.

    Yes, you can serve notice under s21 as long as all the other pre-requisites of that notice are satisfied.
    However, your tenants don't have to obey it, so your agent finding the tenants somewhere else is a better idea.

    CGT is a factor, but, even as a higher rate tax payer, it's 28% of the gain that occurred while it wasn't your residence, you still get the other 72%

    Leave a comment:


  • FirstOnes777
    replied
    I want to move back into my flat so I can remortgage. SVR 3.79%. I am paying £279 extra every month. I won't be able to claim this interest back next tax year. I am not a high rate taxpayer but rental income will push me into the band.
    I want to lock in a new deal as rates are low but i can't until i move back in.

    I am also concerned about Capital Gains Tax when I eventually sell. Ideally, I would have moved back into the property if my mum didn't get sick. Can i issue a section 21 notice and give 3 months notice per the new guideline? My letting agent was going to find them a new flat then the government issued a ban on moving.

    Ideally, I don't want to cause the tenants any stress but I can't afford a large tax bill especially as I only just moved back to UK. This is increasing my anxiety.

    Thank you

    Leave a comment:


  • jpkeates
    replied
    There's no block on moving into a different but empty property.
    You might find it hard to get anyone to help you move, in practice.

    The problem is that the property doesn't sound empty.

    Leave a comment:


  • Gordon999
    replied
    What is your SVR now ?

    You can ask your current lender to extend "consent to let" on a residential mortgage, because of the coronavirus lockdown, you cannot move back yet.

    Leave a comment:


  • dazwalsh
    replied
    it sounds like a perfect storm of bad luck there for you OP, and agree landlords get a bad time of it as of late, esepcially with tax and legislation but there isnt much you can do apart from ride it out.

    Leave a comment:


  • jpkeates
    replied
    You can still claim for mortgage interest, it's just restricted to the base rate of tax (there's a sliding transition, so it's not that bad yet).
    So the changes only affect you if you're a higher rate tax payer (or very close to being one).
    Very few landlords are actually affected at all.

    If you have tenants in your property, you can't move in with them (unless you were living there when they became tenants.
    It's a criminal offence.

    There's no such thing as an accidental landlord (unless you inherited a property with tenants already in it).
    Any more than having a car forces you to be an accidental taxi driver.

    Leave a comment:


  • Coronavirus Consent to Let Residential landlord and Taxes

    Hi,
    I am a first time Landlord. I took out a Consent to Let last year when i moved in with my mum to look after her. My mortgage is on SVR. I was suppose to move back into my flat but the government issued a 3 months stay put order due to COVID-19.

    i wanted to move back in before Covid-19 so i couod remortgage as a residential landlord. I cant now. The taxes i am paying is higher because the rental income is being calculated with my normal income. I cant no longer claim for mortgage interest from HMRC as part of my deduction as that ended on the 5th April.

    With the potential extension of the stay put and tenants not having to move out or potentially pay rent, it is frustrating that accidentially landlord are being penalised with higher taxes and future CGT payments?

    My question is, is there any relief that i can apply for?

    i honestly don't think any landlord will enter or remain with all of the new regulations and higher taxes. Landlords are plugging the gaps of social housing but being penalised heavily.

    Thank you

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