Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 5 days ago 74
A few weeks ago I wasn’t at all happy with the RLA (“Residential Landlords Association”) and I published a rather damning article entitled “Are the RLA losing the plot?”
Well, by my reckoning, they have now redeemed themselves with a “Call for tax rethink after stamp duty windfall“
In an article yesterday on the back of the figures published showing a £1.19 billion Stamp Duty surcharge windfall for the Treasury up to the end of last year the RLA have called for a Landlord Tax rethink.
“The RLA is now calling on the Government to use this extra revenue from the stamp duty changes to scrap planned reforms to mortgage interest relief, which will, in turn, prevent landlords selling up or having to increase rents.”
One RLA survey has found that 58% of landlords are considering reducing investment in their rental properties because of the changes. And 66% feel the tax changes will place upwards pressure on market rents.
At the very least, the RLA believes the Government should pause the start of the introduction, from April, of the mortgage interest changes to enable a better assessment to be undertaken of the likely impact of the policy.
RLA Policy Director, David Smith, said: “In raising nearly twice as much in just nine months as the tax was predicted to make in one year this stamp duty windfall gives the Government a chance to back the rental market and support the development of new homes which we desperately need.
“At no stage has evidence been published to support the assertion that landlords are taxed more favourably than homeowners, or that they are squeezing first time buyers out of the market.
“It is also nonsense for HMRC to suggest that one in five landlords will be affected by the mortgage interest changes, when what matters is the number of properties affected.
“The Government has received far more money than it expected. We urge them to use this to support the country’s tenants and undertake a fuller impact assessment of a policy that has the potential to cause untold damage to the rental market.”
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