The Residential Landlords Association has demanded the Government scrap planned changes to mortgage interest relief in a seven-point wish list submitted ahead of the Spring Budget.
The RLA is demanding the Government:
- Follows the example of Ireland by scrapping planned changes to mortgage interest relief or, at the very least, applying it only to new borrowing for new purchases in the sector
- Waives the new three percentage point stamp duty levy where a landlord is investing in a new property or refurbishing an empty or converted property that is adding to the housing stock
- Removes the anomaly that means that VAT can be reclaimed on goods and services in connection with the construction of a new dwelling when it is intended for owner occupation, but not when it is constructed to rent out
- Encourages landlords to sell properties to sitting tenants by applying the new 20% rate of Capital Gains Tax in such circumstances, supporting the Government’s home ownership ambitions
- Encourages local authorities and public bodies, such as the MoD and the NHS, to identify and sell off small plots (suitable for up to five units of accommodation) of unused public sector and local authority controlled land for development by the PRS.
- Reviews the financial capabilities of landlords to meet the new energy efficiency requirements coming into force from 2018 making EPC recommended improvements tax deductible.
- Provides modest funding to improve access to the PRS for the homeless.
The association is now encouraging Philip Hammond and the Government to look at the bigger picture and consider the impact their tax raid will have on the wider economy, reminding them it is not too late to reconsider.
Alan Ward, RLA Chairman said: “This is not just a wish list that will benefit landlords and tenants, but one that will benefit the economy as a whole.
“The Treasury Select Committee warned a year ago that measures taken to curb buy-to-let would come at a cost to the wider economy, and we would ask the Government to take heed of this.
“The time for change is now and we hope the Government will take the opportunity to grasp the nettle and rethink some of the unfair tax changes set to have devastating impact on PRS landlords ahead of the Budget on March 8th.”
For more detail on the seven-point plan and to read the submission in full click here.