I think this sentence in the article is very telling:
âHowever the Chancellor and Rishi Sunak have agreed that those with the âbroadest shouldersâ should bear the brunt of efforts to shore up the public finances, Treasury sources said.â
It all boils down to the perception that those who invest in stocks and shares are âthe richâ, something admittedly that I thought before I started doing it myself. If this is true, then this government are playing to that stereotype even though I suspect they know fine that isnât the case but they are appealing to the ignorance of the electorate. Dividend allowance is probably the only one that keeps being lowered with impunity because it affects so few people.
That said, we have a massive financial hole caused in part by lockdowns and furlough scheme and every sensible person knew the gaps would have to be plugged somewhere. Iâm obviously not sure exactly how the government are thinking of reforming taxation on landlords and capital gains tax but some movement there would be welcome I think. Buy to let landlords are preventing people buying their own homes and Iâm not convinced that property owners who have benefited from a massive rise in the value of their property by doing nothing other than simply owning the asset shouldnât pay capital gains.
This is probably one of the few situations where my situation of having almost no disposable income is almost an advantage - my property is the one I live in and wouldnât be selling at the moment and I cannot afford to save more than ÂŁ20,000 per year and thus my dividends and investments are protected by the ISA umbrella!
This is interesting. As I own properties but it is far from doing nothing other than owning the properties. It is themselves a full time job, lots of stress, headaches and time goes into managing propertiesâŠin addition to the costs and risks these present.
I suspect that more BTL properties will be sold, as I am having to do with one of mine to keep my family afloat. This will then limit the number of rental properties available, which will in turn out the rental market prices up.
I no longer think itâs safe to assume a stocks & shares ISA is some sort of Nuclear fallout shelter for investors. The government, at some point, will surely review the ÂŁ20,000 yearly limit and bring it down to claw back more tax.
True, but presumably they couldnât make it retrospective for money already invested. And Iâm sure the vast majority of âlittle peopleâ get nowhere near 20k either.
Iâm not sure of this. When houses go for sale anyone can purchase them
The fact that first time buyers canât afford them canât be blamed on landlords
I donât think itâs quite that simple. The reality is that weâve seen decades of lowering interest rates which have massively pumped up property prices for existing owners. In turn they have been able to leverage those capital gains into new mortgages and buy more properties at prices they can only afford exactly because property prices have gone up so much. This in turn props up property prices and makes it increasingly difficult for anyone whoâs not already a property owner to break into the cycle. Add into that the fact that demand for homes is very inelastic and it absolutely works to keep prices higher. And arguable rents to but thatâs even more complex to unwrap.
There are a ton of property owners whoâve never known increasing interest rates so it will be interesting to see what happens if that is sustained.
Yes they can, Edinburgh is a great example. Mortgages wonât cover the offers over part, so you are relying on cash to secure the buy. Most first time buyers have put all their cash into their deposit and have little left to battle it out with multiple bidders to secure a purchase.
Edinburgh is a nightmare to buy, as buy to let landlords and developers with deep pockets outbid you everytime and itâs impossible for anyone trying to get on the ladder to outbid them. I would guess London and other big cities will have the same issue.
Some streets are nearly all Airb&bâs and rentals now, which is quite sad really and it pushes up all the values due to how much over the asking price all the properties are going for. Not saying they are the entire problem but they are certainly a large part of it.
Weâre caught in a vicious circle - when the Tories came into power in 2010, it was to sort out the mess left by the Blair/Brown Labour government. They take it it in turns to make a different kind of mess.
The trouble with any political party is they tend to plan for a 4 to 5 year time span. They start with their parlour tricks to win votes, renage on them then start the process all over again to win votes with hope to win a second term.
What is a centerist! A right wing labour supporter or a left wing tory supporter? Or more likely someone who can always say i didnât support them. Whoever them might be.
Reminds me of all the labour supporters who claim they never voted for the Blair government. How they got into power when nobody voted for them is beyond me!
The basis for a lower tax rate on dividends was that you had paid income tax and you then bought shares with your post tax income. Hence being taxed again. Never thought much of that argument. Till i owned shares!
