RLA evidence on Stamp Duty, Mortgage Interest Relief and Capital Gains Tax has been officially submitted to the Government.
The association’s submission to the Finance Bill committee has called for new build properties to be exempted from the new Stamp Duty levy. It is also calling for Mortgage Interest Relief to apply only to new borrowing and for Capital Gains Tax to be reduced to 20% where a landlord is selling a property to a sitting tenant.
The submission was made this week after it was revealed that MP Kevin Hollinrake is tabling an amendment to the Finance Bill putting forward the RLA’s recommendation on CGT.
The RLA believes the Stamp Duty surcharge will stop landlords investing at a time when PRS properties are in greater demand than ever and in the submission argues that when a landlord invests in a property which adds to the net supply of housing the charge should not be applied.
It is also asking that the bill ensures landlords retain the right to deduct Mortgage Interest Relief before calculating tax – and that the MIR changes should apply only to new borrowing to minimise the impact on existing landlords who could not have predicted these changes.
The deadline for the submission of written evidence is July 14th, with the Finance Bill to be debated in Parliament later this month.