8:26 AM, 14th June 2017, About 7 years ago 2
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.
Previous ArticleTo Trust or Not To Trust - Transferring To Spouse