Transcription
Rachel Reeves from the Labour Party is taxing landlords to death. There was a new budget just today where the Labour Party, Rachel Reeves, announced new taxes yet again. I mean, the last budget last year when Labour first got in, they increased stamp duty ridiculously. They've also brought in the Renters Rights Act, which is now in law, and now yet again, they increased taxes for landlords, for working people.
So, in this video, I'm going to be sharing what the new tax increases are, what the announcements of the budget that happened literally just a few hours ago, what they are, how they're going to affect you, and also how to navigate through them like the wealthy people are doing so you can still be very lucrative in Great Britain despite Rachel thieves trying to tax everything off of you.
It's quite funny watching everybody in the houses of parliament because you can clearly see that all of these MPs, there's a lot of wealthy people who are investing in property and the Labour Party and Rachel Thieves talks about, oh, the poor struggling people, we need to help them. But if you really look at what's going on, what they're trying to do is stop landlords mostly by scaring the heck out of you investing in property.
Now, they have increased taxes on property investors by another 2%. However, I don't think that's really going to affect people like me who are investing through a company and doing things like we should be doing. The main way they're stopping property investors, and this is why it's so funny to watch because they can't change the rules and make it impossible when they're making money in property themselves, the rich people are the people that MAKE THE RULES. THEY'RE DESPERATE, BUT they do this through the media.
And what did they say before the budget months ago? They said they're going to bring a new national insurance for landlords. Tax landlords through national insurance. Now, that would have been devastating. And everyone was like, "Oh, I don't want to buy property or selling." Did they bring that in? No. They also said that they were going to drop the VAT threshold to £30,000 from 90. Everyone was all scared. Everyone, did they do that? Nope. Not a single mention of it. They even said they were going to bring in an exit tax. So, if you wanted to leave the UK, you were going to be clobbered with taxes. and everyone was quickly leaving the UK before the budget. Did they do that? Nope. In fact, did they increase corporation tax for wealthy companies? No, they didn't do that.
The real people that they're hitting are the working people because the the 2% increase on property income. Is that going to affect you if you buy through a company? Probably not. Certainly not going to affect your corporation tax. It's not going to affect capital gains tax. That's only going to affect you probably if you're a small landlord who owns a property in your personal name just like I predicted and you're renting the property out and and now you're going to have a very slight increase of tax. Okay, fine.
But who's really suffering? Well, this is called the stealth tax. This is the deadly one. You don't pay tax at all on your first £12,570. So, if you're a hardworking person and you're making 20 grand a year, you're only going to pay tax on anything above £12,570. But it's been that figure for years and years. In fact, the last increase was from 12,500 to 12,570. So what that means is that as inflation keeps going up and as everything becomes more expensive, money becomes worth less. So the fact that they're not raising that is actually really hurting ordinary working people. This is a strategy called the fiscal drag and it's a way of taxing people. That's why they call it the stealth tax without people even realizing it. So that's what's really going on. And this fiscal drag stealth tax is going to bring in billions of pounds for the UK government without people even realizing it. But believe me, hardworking people are feeling the pinch. So when she says she's not going to increase taxes for working people, she kind of is and kind of has.
The interesting thing is that the way that wealthy people, usually legitimately HMRC approved, get around paying taxes are things like, for example, putting money into a SAS pension. If you put your money into a SAS fund, you can put £60,000 in completely tax free and then you can invest that in commercial property and all the money that you make from revenue, from income, from capital gains is completely taxfree. There was no mention of that and that didn't change. Oh, but what did they change? Employee salary sacrifice. She's talking about how she wants to help the hardworking poor people, but actually no, that that that's that's hurting them. She's just announced that now you can only put £2,000 salary sacrifice into your pension tax-free and then after that you get hit with taxes. This has now been capped at just £2,000 and anything above that you have to pay national insurance both the employee and the employer.
But then when I've got a company and I want to put money into my SAS pension I can put £60,000 in completely taxfree. So is that fair? I can still refinance a property and all of that money that I take out of the refinance, I pay zero tax on because they can't tax you on debt and they won't want to because all wealthy people use debt. In fact, if I buy through a company, I can then use my interest payments as completely 100% taxdeductible. No mention of that. No mention of all the things that the wealthy people are doing, of course, because that's just a bit quiet, you know.
So, what actually has changed then for rich people? Because if there's no if income tax is staying the same, which it is, she said for at least three years income tax is going to be the same. If corporation tax on all companies is staying the same, if capital gains tax is staying the same, stamp duty is staying the same. How are we wealthy people actually affected? You know, there's a lot of people like Gary Stevenson, Gary Economics talking ABOUT BRING IN A WEALTH TAX, TAX THE REALLY RICH. What they brought in is they brought in a mansion tax. This is called a high value council tax. In my opinion, this is just a little token. This is like a little be quiet. There you go. Almost like you've got a naughty kid that's crying and you just give him a sweet. There you go. Have a sweet. Be quiet. That but that's what this is.
Because let me explain. You're only going to have to pay this if you own a property that is valued at £2 million or more. And you have to pay £2,500 a year. Now, I'm not being funny, but £2,500 a year, that is a drop in the bucket. If it's a mansion that's worth £5 million or more, then it goes up to £7,500 a year. Again, it's it's tiny. It's almost like a oh, I'm really rich, so there you go. There's my 2 and 1 half grand. Oh, thank you, Rachel Reeves, for help. But but that is a drop in the bucket. Meanwhile, we've still got our SAS funds. We can still use debt and use it taxfree. We can still move money from company to company and have group structures and do everything we could do before, but you know what? My mansion's expensive. Here you go. Here's two and a half grand. That's my little bit for community. And everyone says, "Oh, that's great that you're punishing the rich. You know what? That is a drop in the bucket.
Meanwhile, benefits have gone up. So, previously, if you were on benefits and you had two children, you could claim benefits for those two children. Any more than that, you couldn't claim extra. They've scraped that and they've now said that every child you have extra, just like it used to be, like the good old days, you can claim benefits. You know what? This has always been good and bad. It's good if you've got someone that's genuinely, you know, gone through a divorce or their partner's died and they've got lots of children and then now the government can do a little bit more to help. It's bad if you've got people just having kids just because they want to get the benefits, but I haven't really got a strong opinion on that one. Maybe you let me know in the comments.
But my main takeaway from the budget is how sneaky they are. Like let let's just look at what they've just done with electric cars. So electric cars, they a few years ago said buy an electric car, everybody buy an electric car, if you buy an electric car, it's going to be 100% taxree. Lease electric car, you can claim all the payments back 100% taxree. So everyone got electric cars. And then they said, "Actually, it's not taxree." And everyone was like, "Oh, I already got an electric car now." But but now today in the budget, they said, "Oh, and you also have to pay 3 p a mile now if you have an electric car." It's like, what? It's so sneaky.
I mean, look at the the fact that for the last few months, they've been saying, "We're going to bring in national insurance for landlords. We're going to bring in an exit tax. We're going to bring in all this stuff that they didn't even mention and is not been brought in." It's sneaky. And the reason they do it is to try and scare people. THAT'S THEIR MAIN STRATEGY. SCARE people to not buy property. Scare people to not want to be rich. But actually meanwhile the rich stand here completely protected with all the HMRC approved legitimate schemes where we can continue making millions of pounds and of course paying some tax but using schemes to pay [music] as little as possible and proportionately paying less than most hardworking people and Labour Party know it but they just clearly don't care.
So Gary economics you failed. I can't lie I was I was a little bit nervous about this budget because there was just so much talk about what was going to happen but I I believe follow the money. Meanwhile, you've got Lloyd's Living, Black Rockck, all the big massive companies over the last six months, 12 months that have been aggressively buying UK properties through companies structured well. So, it's like, h how can they mess with these guys? They really can't and they really won't. So, all the people that were campaigning and saying, "Tax the rich, tax the rich, tax the rich," probably are going to be pretty upset with the new budget.
But don't worry, folks, cuz if that was you and you wanted me to pay more tax and you wanted all the wealthy people and Black Rockck, you wanted to see us paying more tax, don't worry. I've got good news for you. Minimum wage has gone from £10 to £1085. If on the other hand, you're like, man, I want to learn how to do this. I want to join the rich, not bash the rich. and you want to learn how to have a SAS fund completely taxfree, how to utilize debt and make it tax free, how to invest through a limited company, how to get wealthy and use the schemes that the rich use, then I'm going to be running a completely free online training. See, I do this stuff myself, but I also show people exactly how to do it step by step. So, if you want to join me, I'm running a completely free online training session. I'm going to be showing you not just how to make money in property, but also how to keep it. So, I'd highly recommend you join that training program. It's free. There's a link in the description below.
So, you have a choice. You can either hate the rich, bash the rich, and be on the losing team, or you can just join the winning team, make money, become financially free, and then choose to do what you do with your own money. If you want to choose the latter, join me on the webinar. I'll leave a link in the description. And guys, I'll see you there. It's going to blow your mind. God bless.
>> And may I congratulate the right honorable lady on delivering her second budget. I hope she enjoyed it because it really should be her last.