View Single Post
  #6264  
Old 15-11-2016, 06:53 PM
Adlerhorst's Avatar
Adlerhorst Adlerhorst is offline
Happy Felix Day!
 
Join Date: Jun 2004
Location: Hertfordshire
Age: 40
Posts: 59,338
Rep Power: 21474851
Adlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is hereAdlerhorst Sam the man is here
Quote:
Originally Posted by ExCroydon_CPFC View Post
There already has been a legal challenge, albeit one that got over ruled. Still various other options to explore though, and landlords (rightly) won't be accepting this unfair tax without a fight.
property income has, in my memory at least, always been taxed as unearned income. Even back when it was Schedule A income.

In the main people don't get deductions for borrowings costs against unearned income. The fact that one was available at all for mortgage interest is the unusual position. So even on a first principles approach there is little argument to sustain a deduction if the government want to remove it.

This is different from furnished holiday letting income which is treated, and always has been treated, as earned income and a trade (hence why you are seeing a shift to that in central London).

I would be genuinely astonished if a legal challenege is upheld in the UK courts.

But of course you are welcome to throw away your money on such folly. Though you probably ought not to expect to maintain a tax deduction for those costs either.
__________________
The Defector looks like no other breaking pitch in the game. It is well-supinated, leaving the right hand of Fernandez at a fastball trajectory before the laws of physics cease to apply and the laws of awesome take over.

Last edited by Adlerhorst; 15-11-2016 at 07:00 PM.
Reply With Quote