Petition calling for landlord tax relief to be reinstated hits 20,200 signatures

Petition calling for landlord tax relief to be reinstated hits 20,200 signatures

11:48 AM, 11th January 2023, About A year ago 3

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A petition that was launched to reinstate tax relief allowing a landlord’s mortgage interest to be set against rental income has now reached 20,201 signatures – and has seen another well-known backer step forward.

The petition was started by landlord Simon Foster who says: “We want the Government to reinstate the ability of landlords to set the full amount of mortgage interest against rental income before tax is calculated.

“Like many self-employed businesspeople, I am a small, well-established private landlord that is now struggling to make any money from letting properties.”

‘I will, like many, be forced to sell my properties’

He added: “Unless the ability to offset mortgage interest against rental income is reinstated I will, like many, be forced to sell my properties.

“This could reduce the amount of properties available on the private rental market.”

Marc von Grundherr, a director of Benham and Reeves, said: “Rather than commit to solving the housing crisis and build more homes, the government has looked to bring about a short-term fix by forcing landlords to sell up and exit the buy-to-let sector.

“This has been orchestrated via a number of legislative changes designed to dampen the financial returns available to investors.”

‘Reduction in suitable rental properties’

He adds: “Of course, the consequence of this is a reduction in suitable rental properties and with the sector already in dire need of more stock, it’s the nation’s tenants who are paying the price.

“High demand is already pushing rents ever higher and as more landlords exit, this problem will only get worse while the quality of available accommodation will also continue to decline.”

Mr von Grundherr also highlights that the petition to reinstate tax relief for landlords will allow the full amount of mortgage interest to be set against rental income before tax is calculated.

No longer able to deduct any of their mortgage interest

Tax credits, which came into force in April 2020, saw landlords no longer being able to deduct any of their mortgage interest from their rental income when calculating the taxable profits of their investment.

Instead, a 20% tax relief on mortgage interest payments was implemented, a change that has reduced the profitability of buy-to-let investing, along with a string of other legislative changes such as an increase to buy-to-let stamp duty costs and, more recently, changes to Capital Gains Tax allowances.

The Government says it will respond to all petitions that get more than 10,000 signatures and when there are more than 100,000 signatures, it will be considered for debate in Parliament

The petition can be found here.


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Comments

shaun carter

11:18 AM, 12th January 2023, About A year ago

I am a landlord of 32 years ive 8 properties, and due to bad tenant run, new regs etc im lucky if I hit minimum wage.

To all the law qualified landlords, please read and come back to be to get this tax reversed.

As a layer you are are of invitation to treat, racial discrimination and of course equal rights.

Where am I going with this ? Tribunal, court of law, 10 downing Street, or the house of commons?

As you are all aware the interest tends to be our biggest expense; what is the definition of tax ? Tax is paid on profit/earning ? When filing a tax return you show this ? If a land lord gas a £500 mortgage, and rent is £500, he's earning nothing prior to showing all other expenses. How can you pay tax if you don't have earnings elsewhere? Also you have chosen this industry by the invitation to treat on old system goverment set up; that was my case; if just starting wouldn't look at. Interezt rates going up, more to pay out.

Trade decrimination; now you can see where I'm going with racial decrimination. You can give to one business, and pull from another surely thar a firm of decrimination.

Law I feel along with this appeal is the only way to get reversed.

I look forward to a lawer making contact with me at shauncornwall@aol.com
I hope we succeed with a reverse of this interest.

Richard Burton

20:58 PM, 15th January 2023, About A year ago

I can't believe this is a rule that anyone thought was fair. I've signed the petition and sent it to contacts in the industry. Thanks to this rule I have a property in my portfolio with over 30% equity and making a healthy rent but I see absolutely no profit from it due to the £2000 tax I pay on the £10,000 mortgage payments. I'm paying £2,000 to the government for the privilege of being charged 10k by my bank.

Zero earnings! Unbelievable. What a shower of a tax rule.

Pixie Props

19:01 PM, 18th January 2023, About A year ago

Can’t see this gaining traction for the past 10 years the government have made it clear they don’t want the PRS so have set in motion a system to replace decent landlords with corporate pension/insurance buddies. Sadly the end is nigh.

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