Latest news with #Section24
Yahoo
25-04-2025
- Business
- Yahoo
Labour's sinister tax raid is killing off the British family holiday
Sometimes it feels like things in broken Britain can't get any worse, but seeing the Government's latest tax changes hit holiday let owners this month has made me realise it certainly can. Targeting the British tourism industry is yet another example of the miserabilism of this Labour government. For those families seeking a few days of much-needed time away, the traditional UK holiday is almost guaranteed to become even more expensive – or become completely out of reach. Why? Because as of April 6 this year, Section 24 – the controversial tax law, which I have seen decimate the private rental market – has now been applied to furnished holiday lets. Where owners were once able to claim tax relief on the full amount of mortgage interest, they are now restricted to 20pc – the same rules as for buy-to-let mortgage tax relief. As a result, many holiday let owners will see a decrease in their profits and, unsurprisingly, lots of them are selling up. But what I find even more alarming is that, despite the Government causing the private rental housing crisis through the changes to this tax relief, it is now hell-bent on destroying the British tourism industry through widening the net to make it apply to even more properties. The UK economy is already in the doldrums, and yet the lucrative tourist sector – which supported 4.1 million jobs and contributes over £280bn to the UK economy in 2024, according to the World Travel & Tourism Council – is now under threat. Domestic tourism specifically saw 117.4 million overnight visits within Britain in 2023, where the country's holidaymakers spent £31.3bn, according to government figures. It is an unbelievable move by a Government that claimed 'growth' as a strategy, for all I can see is market destruction. This is in addition to rules around second home council tax, again introduced this April. Unless owners are registered as a business and able to claim business rate relief, many will be forced into the financially suicidal position of having to pay 100pc extra for the holiday home. Where is this extra money meant to come from? With their margins already under pressure, holiday home owners will have no choice but to hoist these costs on to the price of their accommodation, and, for some, the cost of a UK break will become further and further out of reach. The situation is even worse in Wales, where the Welsh government has come up with a policy to blow the holiday let market to smithereens. In a bid to apparently ensure people make 'a fair contribution in areas where they have homes or run businesses', the Government has hiked the threshold for minimum let periods, landing many owners with catastrophic and business-ending bills. Since April 2023, properties in Wales need to be made available to let for 252 days, and actually let for 182 days. This has been increased from 140 days made available to let, and 70 actually let. If you don't meet these new rules, you'll be unable to qualify for lower business rates, meaning not only will you get whacked with a second home council tax bill, you'll also likely face the additional second home tax premium. Given the pressures already being felt by these businesses, I find this stupefying. But, then again, I live in the real world. I know the time and effort it takes to run a holiday let. I know what it's like to deal with tourists. I know the hard work that's required to ensure accommodation is always kept up to standard. In the world of politics, such experience is lacking. It seems only stupidity rules, and it's contagious. My fear is it likely won't be long before we see the same lunacy applied to the rest of the UK, making the situation worse once again. The effect of all this, of course, is that many people will ditch British holidays altogether and choose to spend their hard-earned holiday money elsewhere. Who can blame them – frankly, I'd rather be anywhere other than here right now. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
25-04-2025
- Business
- Telegraph
Yet another sinister tax raid is killing off the British family holiday
Sometimes it feels like things in broken Britain can't get any worse, but seeing the latest tax changes hit holiday let owners this month has made me realise it certainly can. Targeting the British tourism industry is yet another example of the miserabilism of our governments. For those families seeking a few days of much-needed time away, the traditional UK holiday is almost guaranteed to become even more expensive – or become completely out of reach. Why? Because as of April 6 this year, Section 24 – the controversial tax law, which I have seen decimate the private rental market – has now been applied to furnished holiday lets. Where owners were once able to claim tax relief on the full amount of mortgage interest, they are now restricted to 20pc – the same rules as for buy-to-let mortgage tax relief. As a result, many holiday let owners will see a decrease in their profits and, unsurprisingly, lots of them are selling up. But what I find even more alarming is that, despite the private rental housing crisis we've seen following changes to this tax relief, now the British tourism industry is in peril through widening the net to make it apply to even more properties. The UK economy is already in the doldrums, and yet the lucrative tourist sector – which supported 4.1 million jobs and contributes over £280bn to the UK economy in 2024, according to the World Travel & Tourism Council – is now under threat. Domestic tourism specifically saw 117.4 million overnight visits within Britain in 2023, where the country's holidaymakers spent £31.3bn, according to government figures. While the changes may have been instigated by the previous Conservative government, the fact that Labour has not stepped in to stop them is frankly unbelievable considering they've claimed 'growth' as a strategy – all I can see is market destruction. This is in addition to rules around second home council tax, again introduced this April. Unless owners are registered as a business and able to claim business rate relief, many will be forced into the financially suicidal position of having to pay 100pc extra for the holiday home. Where is this extra money meant to come from? With their margins already under pressure, holiday home owners will have no choice but to hoist these costs on to the price of their accommodation, and, for some, the cost of a UK break will become further and further out of reach. The situation is even worse in Wales, where the Welsh government has come up with a policy to blow the holiday let market to smithereens. In a bid to apparently ensure people make 'a fair contribution in areas where they have homes or run businesses', the Government has hiked the threshold for minimum let periods, landing many owners with catastrophic and business-ending bills. Since April 2023, properties in Wales need to be made available to let for 252 days, and actually let for 182 days. This has been increased from 140 days made available to let, and 70 actually let. If you don't meet these new rules, you'll be unable to qualify for lower business rates, meaning not only will you get whacked with a second home council tax bill, you'll also likely face the additional second home tax premium. Given the pressures already being felt by these businesses, I find this stupefying. But, then again, I live in the real world. I know the time and effort it takes to run a holiday let. I know what it's like to deal with tourists. I know the hard work that's required to ensure accommodation is always kept up to standard. In the world of politics, such experience is lacking. It seems only stupidity rules, and it's contagious. My fear is it likely won't be long before we see the same lunacy applied to the rest of the UK, making the situation worse once again. The effect of all this, of course, is that many people will ditch British holidays altogether and choose to spend their hard-earned holiday money elsewhere. Who can blame them – frankly, I'd rather be anywhere other than here right now.
Telegraph
30-03-2025
- Business
- Telegraph
Putting property into a company won't save landlords from ruin
Email secretlandlord@ with your comments and questions. It's no surprise that buy-to-lets have become the largest single type of business in Britain, outnumbering even the ubiquitous high street staples of hairdressers and fast-food takeaways. According to research from estate agency Hamptons, there are now over 400,000 companies holding buy-to-let properties – and that figure is set to grow. Why am I not surprised? Tax. Three simple little letters make a huge difference to how thousands of landlords now own assets. Where before investors used to personally own their properties – in their own names – the introduction of Section 24, and the limits imposed on mortgage tax relief, meant many landlords ended up paying tax on money they didn't even earn. In no other business is it not allowed to claim the full expenses for, well, expenses. But landlords are shrewd beasts, and seeing the Government trying to take their hard-earned assets, they adjusted in accordance with the moved goalposts. By putting their properties into company structures, landlords could revert back to claiming the full mortgage tax relief. Of course, a limited company structure is different to owning a property personally, and for many who held a large number of assets over a long period of time, the cost for incorporating was prohibitively high – as it was in my case. Unfortunately, when trying to sell a personally-owned property to a company – even if that company is just you – not only do you have the capital gains tax to pay on the sale, you also have stamp duty to pay on the purchase. This all makes it a very expensive way of transferring ownership. And that's before you factor in the costs of redeeming any fixed-rate mortgage deals, the higher rates that banks charge companies, the cost of solicitors and all the rest of the accountancy fees and expenses that go with such an expedition. It is not a decision to be taken lightly, and for me, it was one that was just so expensive. Of course, hindsight is great and the fact that interest rates later soared made me question whether transferring my properties would have made me better off. However, I did make one vital change after the introduction of Section 24: I never bought a property in my personal name again, unless I was going to live in it. Why did I do that? Tax. Has it been worth it? The jury is still out. The one thing I can tell you about owning property in a company is there is even more paperwork to deal with – on top of what you already have when managing a buy-to-let – because, well, you're also now dealing with the administration of a company. There are more rules, too. When operating as a property company, not only do you have the 170-plus rules to abide by for renting out a property, you also have all the company rules and regulations. That means filing annual returns, making up accounts and a huge array of correspondence with accountants that honestly fizzles my brain. Every year I have to estimate the market value for the properties – I'm unsure why, as I don't get to take any of that paper profit out – and complete a bamboozling array of forms. In return for all of this paperwork I manage to take tax-free dividends of £500, get to claim the full mortgage interest relief for the properties, and get whacked with an accountant's bill. In addition, any mortgages on the properties are charged at higher rates by the banks despite the fact that they insist I personally underwrite all company loans; insurance costs are higher because it's to a company and not me personally; and everyday banking comes with a service charge. Of course, there are other perks, such as being able to claim for a Christmas meal out – among other trivial benefits. Weighing up the pros and cons, I'm now taking the path the Government probably didn't expect me to – I'm selling and paying down the debt on my personally-held portfolio, and waiting for the day when I can escape the clutches of the banks and interest rates once and for all.
Saba Yemen
10-03-2025
- Saba Yemen
At meeting with Palestinian lawyer, Dr. Abu Safia reveals suffering in Israeli prisons
Occupied Quds - Saba: Lawyer Ghaid Qassem from occupied Nazareth on Monday revealed the suffering experienced by the director of Kamal Adwan Hospital, the captive doctor Hussam Abu Safia, who was arrested by the Zionist enemy army during its siege of the hospital. According to the Palestinian Safa Agency, Lawyer Qassem was able, last Thursday, to visit Dr. Abu Safia, who has been detained for more than 70 days in "Ofer" prison, west of Ramallah, after spending about 14 days in the notorious "Sde Teiman" prison. The enemy authorities arrested Dr. Abu Safia on 12/27/2024, from Kamal Adwan Hospital in the North Gaza Governorate, along with many workers, doctors and citizens. Lawyer Qassem quoted Abu Safiya's statement, saying: "From the moment of his arrest, Abu Safiya was transferred to the notorious Sde Teiman prison, and was isolated for 14 days. Later, he was transferred to Ofer prison and isolated for 25 days. After the isolation, he was transferred to Section 24 with the rest of the Gazan detainees, which is one of the two sections that contain detainees from Gaza, in addition to Section 23, in an attempt to isolate them from the rest of the detainees and prisoners from the West Bank and inside Israel." Regarding the investigation with Abu Safiya, Qassem explained that "the longest period of investigation that Abu Safiya was subjected to was for 13 consecutive days, and each investigation lasted from eight to ten hours, and during all of these periods he was subjected to continuous and very ugly abuse, torture, and assaults." Regarding the first thing Abu Safiya asked about during the meeting with Qassem, she said: 'Two months before his arrest, Abu Safiya's son was martyred in Gaza, and due to the situation, he was unable to bury him properly in a cemetery, so he was temporarily buried near Kamal Adwan Hospital. When the meeting began, his main concern and first question was whether the body had been transferred and his son buried properly and honorably or not, in addition to the issue of losing his mother who died ten days after his arrest.' Regarding the extent of Abu Safiya's knowledge of the resonance caused by his story of steadfastness in the hospital and his arrest, Qassem said that 'Abu Safiya did not know that his case had received all this local, Arab and international media attention. They are almost completely isolated inside the prison, and they do not know what is happening outside or the developments taking place in Gaza.' Regarding the scenes of torture and oppression that Abu Safiya narrated to Qasim, she said: 'If we talk about the Sde Timan prison, it is a slaughterhouse in every sense of the word. The torture, violations and starvation there are unprecedented. We are talking about prisoners who have been shackled for ten months, prisoners whose limbs have been amputated without treatment, elderly prisoners who are shackled and blindfolded, prisoners who have lost 70-90 kilograms of their weight, in addition to the issue of the bitter cold, as the prisoners are in open cages, meaning that they are exposed to wind and rainwater, and they are forced to sit on the ground at all times and are prevented from talking to each other, and are prevented from praying and reading the Quran.' The lawyer continued: "In addition to the psychological torment after the intelligence services provided information to the prisoner that his entire family was martyred, regardless of whether the information is correct or not, the prisoner inside the prison is completely isolated and has no source of information or news unless he is allowed to be visited, and this information leaves a huge negative impact on the prisoner who is already suffering from the consequences of torture." Regarding the report prepared by the Zionist Channel 13 and the appearance of Abu Safia during it, Qassem said: "Abu Safia was surprised by the filming that took place, he was not informed and did not know that there was filming, nor did the parties that filmed him, and after the meeting they isolated him and he was subjected to insults, beatings, blackmail and torture." Regarding Abu Safiya's legal status, she added: "The Zionist enemy authorities tried to turn Abu Safiya's file into a regular security file with the aim of presenting an indictment. After a series of investigations and harsh torture to make him fall into any suspicion they could base the indictment on, and after more than 45 days they were unable to find any suspicion against him, they returned his file to its original definition (illegal combatant). The file of an illegal combatant has no rights, whether they are representation rights or an indictment, and every time the decision to extend the detention is renewed." Qassem concluded her speech by saying that "at the end of the visit, I left Abu Safiya in high spirits, and he stressed the message and sentence that (a person is history, and his history is a position that is established and studied)." It is noteworthy that last month, the Zionist media published a video clip of the director of Kamal Adwan Hospital, Dr. Hussam Abu Safiya, from inside the prison, for the first time since December 27, 2024. Dr. Abu Safiya appeared with his hands and feet tied and looking exhausted and tired, during an interview with the Zionist Channel 13 from inside the prison. This came a few days after the enemy authorities decided to transfer Dr. Abu Safiya to detention under the title of "illegal combatant", and revealed that he was subjected to torture, abuse and medical neglect. Whatsapp Telegram Email Print
