We are calling on the Government to clarify the amendments recently tabled to the Finance Bill 2016. These amendments appear to blur the distinction between trading profits from the purchase and resale of property, and investment in property to let.
In a letter to the Rt Hon Phillip Hammond MP, Chancellor of the Exchequer, we have asked for clarification on the implications for this amendment on the private rented sector.
At a time when the government are attacking residential landlords through changes to Mortgage Interest Relief and Stamp Duty Land Tax, we have significant concerns of the potential devastating impact on the sector of further tax changes.
The Law Society condemned these amendments arguing they “set a bad precedent for law making”. Catherine Dixon, Law Society Chief Executive, further commented “If the government did not intend to make a material change, they need to clarify the language in the bill before it is passed. If they are intent on these changes, they should submit them for proper public consultation and legislative scrutiny”.
When Theresa May became Prime Minister just a few months ago, she promised to tackle the UK’s housing crisis, saying “Unless we deal with the housing deficit, we will see house prices keep on rising”. We argue any further attacks on the finances of the private rented sector will only reduce investment in housing, reduce the supply of new homes, increase rents and house prices, and worsen the UK’s housing crisis.
We urge all landlords and members to get behind our campaign to stop these attacks on the sector. We will only succeed if we all work together, so please contact and visit your MP and urge them to support our campaign against these changes.