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Budget Changes - Challenger Bank Impact

August 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The Budget contained two developments affecting the challenger banks (OneSavings, Aldermore, Shawbrook) which have come out of the blue.First, Osborne has raided buy-to-let landlords by restricting the amount of mortgage tax relief that can be claimed to the basic tax rate, which stands at 20%, from 2017. Each challenger has a different proportion of BTL business whilst BTL landlords who hold property within a limited company are unaffected by the changes so we don’t think demand for lending will necessarily fall greatly.The second change is more damaging. It is an 8% additional taxation on bank profit from January 2016. Counteracting the impact slightly is that the tax will not apply to the first &poun ...

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Wilmington

Clinigen

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Budget Changes - Challenger Bank Impact

August 2015

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