From:  whitely525@yahoo.co.uk
Newsgroups: uk.finance
Subject: Re: Tax grab on us whilst working overseas
Date: Wed, 10 Oct 2007 08:31:23 -0700
   posting-account=ps2QrAMAAAA6_jCuRt2JEIpn5Otqf_w0
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On 10 Oct, 09:51, JimBob  wrote:
> True to form, with yesterday's PBR, Brown and Darling have achieved
> several other sneaky tax grabs.
>
> One I've spotted is the removal of an individual's personal tax
> allowance when UK citizens are non-resident  eg working on contract in
> another country. See inhttp://www.hmrc.gov.uk/pbr2007/notes-pdf.htm
>
> Previously, if you went overseas to work and you chose to let out your
> house rather than leave it unoccupied, you could offset some of your
> rent against your personal tax allowance. No longer.
>
> Meanwhile if you are a Buy to Let speculator you can still offset all
> your rental income against your cost of borrowing. Weird isn't it?

Yes, but for how long....?

I can sense an oncoming "headline-grabbing initiative closely
associated with Tony Blair" (sorry, Gordon Brown)

> If they stopped the rental income against borrowing costs on BTLs then
> the over -inflated house market would deflate overnight and ordinary
> working folk could afford to buy their homes.

Erm, no.  BTL is only a small proportion of the market.  I don't see
how anyone could argue it is not a legitimate expense you cannot
offset.  There is nothing stopping FTBs going into BTL (so to
speak).

The reason for high house prices is because we simply did not build
enough houses to meet demand.  We certainly built a lot more, but
nowhere near what is needed.