What Makes Car Rental Businesses So Different?

What Makes Car Rental Businesses So Different?

8:26 AM, 14th June 2017, About 7 years ago 2

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If the general public borrow money to buy a car they don’t get tax relief on the finance costs.

However, car rental businesses do, regardless of whether they are operated as a sole trader, a partnership or a company. They offset their finance costs off against their rental income on the basis that Ina few costs are a legitimate business expense. 

Likewise, if the general public borrow money to buy a home to live in they don’t get tax relief on the finance costs.

The odd things is that rental property businesses increasingly will not be able to offset their finance costs as a business expense against their rental income if they are sole traders or partnership but they will if they trade as a company. How is this “levelling any playing field”?

How can this possibly be right?

I think it is likely that the Tory Government lost so many seats at the last election as a result of this ludicrous taxation policy. This is because I hear many landlords complaining about unfair tax treatment and vowing never to vote Conservative again until fairness returns. I also wonder how many tenants, who might otherwise have voted Conservative, have had their rents raised by landlords who need to pay this tax, or worse still have had to find another home due to their landlords selling up. Might the Conservatives have lost their vote too?

I look forward to reading your comments below.

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Guy Bradley

20:52 PM, 14th June 2017, About 7 years ago

I wrote to my local Conservative MP setting out my specific reasons why I could not vote for him or the Conservatives again (citing Section 24 et al). He responded to his credit and had basically obviously just cut & pasted Treasury guidance verbatim. I responded again with more in-depth information and targeted quotes from credible people/organisations and it went silent.

I will not vote Conservative ever again due to the inequity/unfairness of this policy and, further, due to their weak and public-sentiment-led implementation of this. I expected better of the party that I have voted for the majority of my adult life. I will stick to my intention never to vote for them again unless parity with all other businesses on this matter is returned.

john glynn

7:22 AM, 16th June 2017, About 7 years ago

I would have voted Conservative but abstained at the election as I couldn't see any credible alternative. They took their traditional core vote for granted (landlords, pensioners etc) and wonder why they lost seats. It doesn't matter how much they try and put a spin on s24, the fact that a sole trader can't offset mortgage interest as a legitimate business expense but a limited company can simply defies logic.

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