 Gordons BTL Interest Timebomb
On another site I got to thinking about my BTL properties. I've just realised that Gordon will have a problem in a year or so (after the next election, if he calls it early?).
Like many landlords, my properties are mortgaged as interest only. As an example, my repayments on one property have risen since 2005 from £506 to £594. Per year, rounded down to the nearest £100, this has reduced my profit by £1000. This property is average, so my five properties have had profitability reduced by £5000, meaning I will pay £1,100 less tax at 22%.
A similar scenario of reduced profitability (or even losses to be offset) must be repeated across the land. Would a total loss to the exchequer of a billion be off the mark? He'll have to find this from somewhere. Fuel Duty (which will push up inflation and mean yet higher interest rates?) or other stealth taxes.
Sound's frightening to me - or am I just being alarmist?
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On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Read anything I write with the above in mind.
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