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Disappointment for landlords as Treasury responds to RLA

RLA
Written by RLA

Financial Secretary to the Treasury, David Gauke MP, has recently responded to the RLA calls for Government to reconsider the changes in taxation for private landlords set to come into force in April 2017. The Treasury remain steadfast in their proposals despite growing pressure across the sector…

Financial Secretary to the Treasury, David Gauke MP, has recently responded to the RLA calls for Government to reconsider the changes in taxation for private landlords set to come into force in April 2017. The Treasury remain steadfast in their proposals despite growing pressure across the sector.

The document was sent to Chancellor of the Exchequer George Osborne and MPs that have an interest in housing. The document stressed that landlords relied upon tax relief on mortgage payments to be able to conduct their business.

In the response, MP David Gauke stated a desire for ‘a fair tax system.’

“That means ensuring that landlords with the largest incomes no longer receive the most generous tax treatment. By restricting finance costs relief available to the basic rate of income tax all finance costs incurred by individual landlords will be treated by the same tax system”.

You can read the response letter from Mr Gauke in full, click here.

The RLA is obviously disappointed with the reply and stance of Government and will continue to lobby to ensure landlord voices are heard. In the meantime consider writing your local MP to emphasise the importance of these proposals.

You can get further advice, and get links to write to your MP on the following story: Campaigning toolkit launched for landlords to tackle taxation losses.

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.

3 Comments

    • @Sally Miles – unfortunately new tax on small business will apply to everyone with Buy to Let Mortgages regardless of the date of purchase/refinance.

      One can hope the RLA and others will be able to change this before it becomes law, considering the justification in the letter is to make it “fair” market place for new acquisitions.

      The minister is not wanting to punish existing landlords; or is he?

      • Yes I believe that is exactly what he wants to do and those who are professional landlords with mortgages, where property is their sole source of income, will be hit hardest.

        Many people who have worked hard and saved hard to make property part of their pension pot will be badly affected.

        The only option will be sell to up all or part of any portfolio or increase rents – and all this by a conservative government – in my opinion maybe Corbyn is not alone in seemingly ridiculous policies.

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