Uncategorized

Changes to taxation and mortgage interest relief (MIR): RLA in the news

RLA
Written by RLA

Changes to taxation relief have been at the forefront of most landlord’s minds and the RLA Policy and Campaigns team is busier than ever compiling case studies, briefing papers, and offering alternative proposals to the Treasury to limit as much as possible the effects on Landlords. The idea of selling to first time buyers seems to have attracted some attention as you will see below. However, we have received confirmation form Government that they will not be changing their minds on MIR as the letter to us from Minister David Gauke confirms, you can read this response below.

Changes to taxation relief have been at the forefront of most landlord’s minds and the RLA Policy and Campaigns team is busier than ever compiling case studies, briefing papers, and offering alternative proposals to the Treasury to limit as much as possible the effects on Landlords. The idea of selling to first time buyers seems to have attracted some attention as you will see below. However, we have received confirmation form Government that they will not be changing their minds on MIR as the letter to us from Minister David Gauke confirms, you can read this response below. 

Some of our ideas include Capital Gains relief where Landlords sell to first time buyers if they want to exit the market, to apply the new MIR policy to just new lending and to allow tax relief of energy efficiency improvements in the absence if Green Deal and LESA.

RLA Chairman Alan Ward and Policy Director David Smith have conducted a series of interviews recently. The RLA policy team is campaigning tirelessly to ensure that the voice of members and landlords throughout the private rented sector (PRS) are heard and considered. The following is wider reporting of these efforts.

Buy to let investors – Let us off capital gains tax and we’ll sell to first-time buyers (Telegraph): Britain’s biggest landlord trade body is urging the Government to waive capital gains tax where properties are sold to first-time buyers

Government rules out any re-think on restricting buy to let tax (Letting Agent Today): The government is ruling out any re-think on its proposals to reduce buy to let tax breaks from next year. The Financial Secretary to the Treasury, David Gauke, has written to the Residential Landlords’ Association to emphasise the determination of the government to plough ahead with the changes, first announced in July by Chancellor George Osborne.

Further Information

About the author

RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

Add Comment

  • Its fine trying to fudge the capital gains tax issue, but we need professional property businesses to be treated as trading companies. Times have changed from centuries past when the landed gentry earned their living from their large rental estates.
    We would very much like to sell some of our properties and invest in different areas and types of housing, but we are in effect locked in by the capital gains structure – we have been landlords for 30 years – it’s hell to think that we are locked in – HELP!

  • Requesting a CGT exemption on the proviso that a sale is to a ftb assumes that one’s properties are suitable ftb acquisitions. What about HMO or student halls, they are as affected by this cack handed tax grab.

  • I have been doing a lot of work on this recently (consulting and lecturing to accountants). If your lender is willing to move borrowings to a corporate it is perfectly feasible to incorporate your property portfolio without paying any CGT or SDLT. Properties are then in the company at market value. There is therefore a way out of the new rules.

    • Response to Dean Woottens comment: If you move property into a corporate structure isn’t it the same as selling to the corporate structure where CGT would arise?

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.