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Landlord tax petition reaches milestone

RLA
Written by RLA

A petition to ‘Reverse the planned tax relief restriction on individual landlords’ has reached the required 10,000 signatures to require a Government response. The petition follows the Summer Budget announcements which will see many buy to let landlords affected by reduced Mortgage Interest Relief (MIR) to the basic rate of 20%. If you haven’t signed the petition please consider doing so now…

A petition to ‘Reverse the planned tax relief restriction on individual landlords’ has reached the required 10,000 signatures to require a Government response. The petition follows the Summer Budget announcements which will see many buy to let landlords affected by reduced Mortgage Interest Relief (MIR) to the basic rate of 20%. If you haven’t signed the petition please consider doing so now.

Click here to be taken to the petition: “Reverse the planned tax relief restriction on ‘individual’ landlords”.

The numbers of signatures has now reached the minimum number of 10,000 signatures to require the Government to respond. Should the petition reach 100,000 signatures the petition will be considered for debate in Parliament. Regardless of reaching this further milestone, the more signatures, the bigger the impact.

The petition argues:

“The Institute for Fiscal Studies has stated, in response to the Budget, individual landlords are already taxed more heavily than other homeowners.

The private rented sector is heavily reliant on individual landlords. The planned change is likely to result in higher rents due to landlords looking to offset higher tax liabilities”

The RLA has created a tax campaign webpage in a bid to help landlords with the new conditions placed on them by George Osborne’s recent Summer Budget announcements.

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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.

8 Comments

  • Its shocking that Landlords have such a hard time with red tape stacked up against them and a failing court service with no chance of recovering rent arrears from tenants playing the system and now we are getting screwed for more tax……un believable !

  • Having worked so bloo*y hard over this last 37 years and to finally build up a small portfolio of rental properties as a substitute to a pension my wife and I feel very hard done to. George Osborne has not thought this through. We already pay a significant proportion in tax and when we come to sell one of our properties we will also pay capital gains tax. We are often accused of preventing the first time buyer from getting on the property ladder, but one only has to look on rightmove.co.uk to see how many properties are still available for purchase. Maybe the access to the right kind of mortgage is the main problem, but the chancellor doesn’t want to upset the bankers anymore. It looks like the Co-operative bank will be let off a heavy fine because it may undermine their capital position. If the chancellor wants to raise more revenue then why doesn’t he go after the big multinationals who pay very little if any tax? The amount of tax avoided by the multinationals over the last 15/20 years is astronomical. DYOR…..its worth a look.

    • Chris, you are absolutely right. This is totally unfair. The only course of action for me is to consolidate my portfolio of 26 units. I intend and have no choice but to sell 11 properties to pay off mortgages on the remaining. I have a mix of DSS and working tenants. Unfortunately, it is my DSS tenants who will suffer the most as rental supply to this group will shrink due to low housing benefits and low profits due to the planned tax relief restriction. We run a business like any other business and are being unfairly squeezed.

  • Those landlords which think it will not affect them as on 20% tax rate and make very little profit need to think again. Many could be pushed into the 40% bracket.

  • I notice that the MP Graham Brady, from the ‘influential’ 1922 Committee visited the RLA, as did the Housing Minister. It would be good if you could follow up these people and ask what they are doing to support landlords, as we face the biggest ever attack on our livelihoods and the most atrocious act of injustice perpetrated by the Government of this country.

  • i THINK IT IS SO BAD TO TRY AND GAIN EVEN MORE TAX OUT OF HARD WORKING PEOPLE. WHO ARE TRYING TO GET EXTRA MONEY FOR WHEN WEE REITIRE. WE ARE TAX PAYERS AND HAVE ALWAYS WORKED WHY DO YOU TRY AND GET THE LONG TERM UNEMPLOYED OUT IN THE COMMUNITY ,CLEARING VEGITAION FROM FOOTPATHS,OVERGROWN COMMON AREAS.

  • Landlords provide a business service. Bad landlords need to be reined in but not at the expense of good landlords. Buy-to-let has been blamed for house price increase pressures, this could be controlled in other ways. This is the only business I know where turnover will be taxed irrespective of profit or loss. An exodus from the housing market by small investors may have unwanted side-effects in the market but that is likely to be reduced simply by large investors filling the void without the need for financing through mortgages. The net effect would be even greater wealth imbalances in UK. The situation could be exacerbated by foreign cash investors seeking a port in what is a tumultuos international financial storm.

  • I’ve worked and earned deposits for my investment properties x4 ( as a pension alternative ) I’ve paid tax on that money .. I’ve then paid tax on any profits over and above my legitimate expenses including mortgage interest .
    And then when I do decide to either sell to retire I’ll pay capital gains tax too..
    Talk about bleed Landlords dry
    Under British Tax Law it clearly says that tax is paid on profits only not expenses in the course of carrying out a business activity . My investments are a business activity and therefore it must be illegal to Tax me on an expense.

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