Homeowners doing their own electrical work

[JohnD]

...which implies (states) that they are treated more favourably which isn't the case and in future may be treated less favourably.

It alludes to the fact that a person borrowing money to invest in property is treated more favourably than a person borrowing money to invest in something else.

Which is true.

They are.

You may if you wish draw the inference that I consider they should be treated equally.

Not "less favourably."

Equally.

 

[EFLImpudence]

It alludes to the fact that a person borrowing money to invest in property is treated more favourably than a person borrowing money to invest in something else.

Which is true.

They are.

No, it isn't.

If I buy a taxi, or a lorry, for a business or rent an office then interest on loans or rent is an allowable expense.

Why do you not think mortgage interest should be an allowable expense for a property business
or why do you not class a property enterprise as a business?

 

[JohnD]

They're trying to decide what is a business. If you are a professional plumber, and dabble with stamp collecting in your spare time, you might make a profit. If you are a professional banker and dabble with Krugerrands in your spare time, you might make a profit. If you are a professional gardener and rent out a flat in your spare time, you might make a profit.

Treat them all the same.

 

[EFLImpudence]

Treat them all the same.

So, you agree with me, then.

 

[JohnD]

If you're saying that either

(a) People who borrow to invest in Krugerrands, homes, shares and rare stamps should all get tax relief on the cost of borrowing,
or
(b) People who borrow to invest in Krugerrands, homes, shares and rare stamps should all NOT get tax relief on the cost of borrowing,

then we may be half-way there.

At the moment only the BTL people get it.

To be in full agreement depends on whether we choose (a) or (b)

 

[EFLImpudence]

At the moment only the BTL people get it.

No, this is where you are going wrong.

All businesses are allowed tax relief on genuine expenses.

 

[JohnD]

The hobby stamp collector, the hobby Krugerand buyer and the hobby share investor don't get tax relief on interest for money they borrow to invest.

Why should the hobby BTL investor be different?

As I said before:

(a) People who borrow to invest in Krugerrands, homes, shares and rare stamps should all get tax relief on the cost of borrowing,
or
(b) People who borrow to invest in Krugerrands, homes, shares and rare stamps should all NOT get tax relief on the cost of borrowing,

At the moment only the BTL people get it.

 

[EFLImpudence]

Ah. So now you're clutching at the straw that BTL landlords are only enjoying their hobby.

Are there no Stamp collecting businesses that have bought (or rented) premises?
As for Krugerrands and shares, I refer the honourable gentleman to my earlier reply mentioning hedge funds.