Home » News » Buy-to-let damaged by govt’s tax and mortgage changes, says leading lender previous nextBuy-to-let damaged by govt’s tax and mortgage changes, says leading lenderParagon reveals the number of mortgage being taken out has dropped since new tax relief, Stamp Duty and mortgage underwriting rules were introduced recently.Nigel Lewis23rd November 20170954 Views The Prudential Regulation Authority’s changes last year to the UK’s lending rules for the buy-to-let sector have led to reduced activity in the market, leading lender Paragon has reported in its full-year accounts.Following a review of the buy-to-let market in 2015/2016, the PRA this year raised the standards it expects underwriters to apply to landlords taking out mortgages.This includes greater scrutiny of a landlord’s overall business financials, in particular for portfolio landlords with four or more properties.Paragon also says the additional Stamp Duty that is now paid by landlords buying properties, and the reduction is tax perks for the sector, also contributed to a bad year.Stamp DutyThese factors, the lender says, helped drive modest profits within its business over the past year, up from £143.2 to £144.8 million – a rise of just 1.1%.Paragon appears to suggest that the additional red tape has increased its costs, because its buy-to-lending increased by 20% to £1.39 billion last year.And depsite the “disruption” to the market in recent months, the lender says overall demand in Britain’s private rented sector is expected to continue for the “foreseeable future”.“Against this backdrop the Group’s performance has been strong, with its twenty-year experience of servicing the complex needs of professional landlords differentiating it from other lenders and allowing the business to make market share gains during the year,” says Chief Executive Nigel Terrington in his management report.But Paragon says it is the tax relief reductions introduced by the government for landlords which have had a more damaging influence on landlords than the extra 3% Stamp Duty they must now pay on property purchases.“It is the amateur landlords – those with fewer than four properties – who have been moving away from the market,” the report says, “leading to a fall in the volume of buy-to-let transactions which seems to be establishing a new ‘normal’ level.”nigel terrington landlords paragon PRA buy-to-let November 23, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021
Julie Borlaug is continuing the legacy of her late grandfather, agronomist and Nobel laureate Norman E. Borlaug, and inspiring the next generation by advocating for innovation and technology in agricultural production to end world hunger.She will deliver the D.W. Brooks guest lecture, “Using Innovation and Technology to End Hunger and Poverty,” as part of the College of Agricultural and Environmental Sciences (CAES) annual faculty awards celebration.The event, which is open to the public, will be held on Zoom at 3:30 p.m. Nov. 10, 2020, with a short Q&A session to follow.“Now is the time for us to demonstrate how our passion and dedication have found solutions to the major threats we face as a collective human species: food and nutrition security, environmental stability and sustainability,” Borlaug wrote in an Agri-Pulse column earlier this year, an example of her thought leadership and public communication about agriculture.Borlaug is vice president of external relations for Inari Agriculture, a seed company using data and biological science to transform plant breeding using approaches that significantly reduce inputs like land and water required to produce food and feed. Headquartered in Cambridge, Massachusetts, the company was named a Technology Pioneer by the World Economic Forum last year.“Julie is the epitome of who we call an ‘agvocate’ — an agricultural advocate — who is using her skills and passion to solve and communicate global agricultural and environmental challenges,” said Joe West, interim dean and director of CAES. “We are delighted to have her speak to our faculty, staff, students, alumni and friends.”Borlaug has developed agricultural partnerships between public, private and philanthropic groups to expand the mission to feed the world’s hungry. She previously served as director of strategic initiatives for Texas A&M Agrilife Research, associate director of external relations for the Borlaug Institute for International Agriculture, and director of development for the American Cancer Society. She earned her bachelor’s degree in political science and international studies from Texas A&M University and her master’s in business administration from the University of Dallas.Faculty awards announcedThe 2020 D.W. Brooks Faculty Awards of Excellence, the highest honor bestowed by the college, will be given to five faculty members for outstanding work across the college’s mission areas. The 2020 D.W. Brooks Faculty Award for Excellence in Teaching goes to Gregory Colson, an associate professor in the Department of Agricultural and Applied Economics, who has developed hands-on experiments and games for his classes to reinforce the material and give students a tangible experience to complement the theory lesson.The 2020 D.W. Brooks Faculty Award for Excellence in Research goes to Esther van der Knaap, a professor in the Department of Horticulture and Institute of Plant Breeding, Genetics and Genomics, who has spent much of her career working to understand the genetic shifts that have occurred between ancestral, wild tomato varieties and modern, cultivated tomatoes.The 2020 D.W. Brooks Faculty Award for Excellence in Extension goes to Tim Coolong, a professor in the Department of Horticulture, who primarily conducts vegetable field research but has worked on a broad variety of topics, from germplasm evaluation to food safety in vegetables to hemp production.The 2020 D.W. Brooks Faculty Award for Excellence in Public Service Extension goes to Phillip Edwards, a UGA Cooperative Extension county coordinator and Agriculture and Natural Resources agent in Irwin County, who has conducted 139 applied research trials resulting in more than 50 state and/or national presentations and posters. The 2020 D.W. Brooks Faculty Award for Excellence in Global Programs goes to Bob Kemerait, a professor in the Department of Plant Pathology, who has been a leader in USAID-funded projects to improve peanut production among small-scale farmers in Guyana, Haiti and the Philippines and recently received a Fulbright award to work with faculty and farmers in the northern Philippines. “Although we can’t celebrate them together in person, we are delighted to honor these exceptional faculty members,” said West. “Each of them brings unique skills that strengthen our discoveries and dissemination of scholarly work through education and outreach programs. They exemplify the quality we strive for as a land-grant college.”The D.W. Brooks Lecture and Awards is named in memory of the late D.W. Brooks, founder of Gold Kist Inc. Brooks started Cotton States Mutual Insurance Companies in 1941. An alumnus and faculty member of CAES, Brooks advised seven U.S. presidents on farm and trade issues.For more information about this year’s event and to tune in to the D.W. Brooks Lecture on Nov. 10, visit dwbrooks.caes.uga.edu.
The city of Vienna has announced the suspension of negotiations with Airbnb due to non-compliance with Austrian legislation.In Vienna, all renters of private accommodation for tourists, either directly or through online rental platforms, are required to pay a sojourn tax. For this purpose, renters must have a special account opened to which it is paid. The aim of the negotiations with Airbnb was to agree on the collection of fees directly from Airbnb and their forwarding to the City, writes Lider.mediaThe aim was to improve the control of the payment of sojourn taxes and to make it easier for renters to operate, so that in future data would be processed directly via the Internet from accommodation rental platforms. Airbnb rejected such a proposal, and the City decided to suspend negotiations due to non-compliance with Austrian legislation and the denial of the possibility of controlling earned sojourn taxes.”The city is not against the sharing economy. However, when a company does not respect Austrian law and is not ready to reach agreements on other issues, then we cannot successfully negotiate. ” said City Economy Councilor Peter Hanke.Villa Plama, Korcula / Photo: croatialuxuryrent.comIn addition to refusing to collect the sojourn tax, Airbnb also refused to provide the City with any information about its customers, such as whether a particular renter pays the sojourn tax. The termination of negotiations will not affect private renters who still have to comply with the legal obligation to open a special account for the payment of sojourn tax and send monthly statistical reports to the City.Following the termination of the negotiations, the City sent an official request to Airbnb to provide the requested user data within the legal deadline. In the event that Airbnb refuses to do so, the City will initiate administrative proceedings. Penalties for non-transmission data vary between 38 and 2100 euros per data.So far, the City of Vienna has reached agreements with 13 platforms for renting accommodation, and administrative proceedings have been initiated against five with which no agreement has been reached. In total, the City is in contact with 19 platforms, and is an example of good cooperation between city administrations and accommodation rental platforms. In addition, the City of Vienna is working to inform its own landlords who can find their rights and obligations on the City’s website.It is only a matter of time before other cities, ie states, wake up and seek cooperation according to the same model as in Vienna. It is simply a matter of regulating the payment of taxes in accordance with the law, which the landlords tried to avoid.This is by far the best example of how things should be regulated. Tax must be paid in each state, in accordance with the tax policy of each state. Thus, landlords must pay taxes in accordance with the Act, as well as all other entrepreneurs, who make money and sell their services or products. By direct cooperation with booking platforms, there is no blurring and everything is clear and transparent, so it is a win-win for everyone. The landlord who provides the accommodation service earns the booking platform its commission for connecting the buyer and the landlord and the state to which the tax was paid. In Croatia, this is regulated through the VAT ID number, and VAT is calculated only on the commission of booking pages.
Homegrown big data analytics company Bonza has announced that it has received an undisclosed amount of seed funding from East Ventures, one of the most active early-stage venture capital firms in Indonesia.Bonza will use the funding to develop its technology and expand its business operations. It is currently building a product to simplify data preparation and analyze data.“Our mission is to support organizations in making sense of their data from various sources, integrate it into a single source of truth and use it to build and deploy AI and machine-learning solutions for better decisions at scale,” said Bonza co-founder Elsa Chandra. East Ventures co-founder and managing partner Willson Cuaca said the investment would enable Bonza to build a platform that facilitated decision-making and monitored the results of those decisions by presenting insights generated from unstructured data.“Bonza has adopted an algorithm to estimate the effective reproduction number (Rt) of the COVID-19 virus throughout Indonesia and other countries in the region,” he said, adding that Indonesia needed metrics to monitor the impact of reopening public spaces on the infection rate.The start-up has recently released data on the nationwide COVID-19 Rt on its website.Rt is an epidemiological parameter used to measure virus transmission rates. It is often used by policymakers to devise COVID-19 plans and measure the effectiveness of control measures such as large-scale social distancing (PSBB).For example, if Rt is 2, it indicates that an infected person, on average, will transmit the virus to 2 people. Each patient will then, on average, transmit the virus to two other people and so on.However, if Rt is less than 1, a carrier will, on average, transmit the virus to less than one person. This suggests the number of infected people in the area will decrease over time until transmission stops.The Bonza Rt data presents a confidence interval indicating the range of uncertainty in its value of Rt. As the testing ratio increases, the grey area will get smaller, indicating higher levels of confidence.Topics :
Several stakeholders have welcomed the revised draft, presented at the end of last week, but they have also called for further amendments. The new independent think tank Pensions-Akademie, launched by the German branch of KAS Bank, told IPE the amended draft was “a significant improvement”, but it argued that the proposed changes to the tax regime would prove a challenge for pension providers.The BVI said the segment on Spezialfonds refunds for “privileged investors” were “too complex” and would increase costs for the KVG asset management platforms and their members.“Overall,” the Pensions-Akademie added, “the changes to the draft … are in no way enough to give occupational pensions the important status they should have, given the demographic challenges.”Georg Geberth, head of the tax and pensions working group at Germany’s pension association (aba), told IPE it was “fortunate” the BMF had amended several parts of the draft.But he said further amendments had to be “looked into in more detail”, as fund investments were of “major importance” to the occupational pension industry.Other associations – for public and church pension funds (AKA) and Versorgungswerke (ABV), for example – also gave the amendments a cautious welcome while noting that they would need more time to assess the impact the new draft might have on their members.According to the BVI, the amended draft will render Spezialfonds “attractive again”, as the BMF has forgone its initial plan to introduce a flat-rate taxation up front for re-invested profits from these vehicles. Germany’s Finance Ministry (BMF) has deemed Pensionskassen and so-called Unterstützungskassen, or support funds, as “privileged investors” in a new draft of an amendment to the country’s investment law.The change means they will be refunded certain taxes introduced on domestic fund structures.Under the BMF’s initial proposal this summer, Pensionskassen and Unterstützungskassen would have fallen under new regulations introducing a 15% tax on dividends, rental income and sales profits from domestic retail funds.The German pensions industry raised a number of concerns about the government’s initial proposal, with the investment fund association (BVI) warning that it would have been a “heavy burden” for occupational pensions.