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How to relieve the housing crisis


I was chatting to my accountant recently and we were discussing the rumours surrounding the changes to entrepreneur’s relief for small businesses.

This got me thinking and I asked him why my clients cannot claim it for their buy to lets. After all, if you buy a property with the sole intention of never living in it, letting it out to generate an income to cover your costs and make a profit, how is that different to providing mortgage advice, getting paid for it, making a profit?

When I come to sell my mortgage business I will qualify for entrepreneur’s relief and pay just 10 per cent tax on my gain – I have said many times before that I am an eternal optimist. Why then should I not pay 10 per cent tax when I sell my buy-to-lets?

They are commercial entities, run as standalone businesses and designed to make a profit for the owners on an annual basis and upon realisation.

It would take a very brave accountant to allow me to claim this – does anybody know one?

Seriously though, just imagine what an impact it would have if we could pay just 10 per cent tax for having buy-to-lets?

This would encourage investors to take their cash from the banks and invest it in property. The empty houses and flats would be snapped up in this new tax efficient environment. Developers would be inspired to complete old developments and start new ones.

And most importantly a huge dent would be made in the housing crisis that sees so many people in B&Bs due to the lack of available homes.

If not, we could ask for them to be included in self invested pension plans again as that was very popular!      


Second-charge approvals on a high

Second-charge mortgage approvals hit a four-year high in October, according to figures published last week by the Finance & Leasing Association. A total of 1,391 new approvals were secured in the second charge mortgage market in October 2013, a 25 per cent increase from the same month last year. The value of new business in […]

Foreign property owners now liable for CGT

The Government has confirmed it will introduce capital gains tax for foreign property owners. Delivering the Autumn Statement last week, Chancellor George Osborne said foreign investors who do not reside in the UK will have to pay capital gains tax on future gains on UK residential properties from April 2015. The current rates for capital […]

OneSavings Bank in float rumours

OneSavings Bank, the bank created out of a rescue deal for Kent Reliance Building Society, is rumoured to be preparing to float on the stock market next year. The lender has reportedly begun talks with investment banks about a listing during 2014. A spokeswoman for OneSavings says: “I can confirm that OneSavings Bank is reviewing […]

Calls for Govt to water down or scrap Help to Buy

Capital Economics has called for the Help to Buy scheme to be shelved in order to cool the housing market after new data showed house prices have soared over the past year. According to Halifax last week, house prices rose 7.7 per cent year-on-year in the three months to November. Prices have now risen for […]

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Company sick pay – new findings

Research by insurer LV= suggests that some 11 million employees in the UK have no company-paid sick leave entitlement. So if an employee from within the above grouping cannot work through illness or injury for any period of time, their only income would likely be that provided by state benefits alone.


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