Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.

The Residential Landlords’ Association (RLA) is very disappointed with the Government’s stance and reply to their letter about the forthcoming “turnover tax” changes for landlords.

The RLA has said it will continue to lobby to ensure landlord voices are heard on this issue and to mitigate its effects as much as possible before its introduction 1st April 2017.

In the meantime it is urging all landlords to consider writing to their local MPs to emphasise the importance of this issue to landlords.

A document was sent to Chancellor George Osborne and all those MPs that have a direct interest in housing, about the issue. The RLA’s document stressed that landlords relied upon tax relief on mortgage payments to be able to conduct their business.

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In the response received by the RLA, MP David Gauke stated a desire for ‘a fair tax system”, but The Treasury it seems remained steadfast in their proposals despite growing pressure across the private rented sector.

Mr Gauke said that:  “A fair tax system… means ensuring that landlords with the largest incomes no longer receive the most generous tax treatment. By restricting finance costs relief available to the basic rate of income tax all finance costs incurred by individual landlords will be treated by the same tax system”.

The full response from David Guake MP can be read here

Access the RLA’s tax campaign page here

Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.
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2 COMMENTS

  1. Our only options are to 1: Sell, 2: Increase rents or 3: Pay off our mortgages.

    The most prudent will probably do a mix of all three. I know I will have to.

    Going to be disastrous for the PRS.

    Jason McClean

  2. Unless you do it NOW, the sell option will probably be very unpleasant at the time, because the whole market will be trying to do the same at the same time…. and very reluctant to cut price. The net effect will be to actually decrease availability of property to rent, increase cost of renting and concentrate property ownership towards those who are already very large with low or no mortgage.
    Because there is little commitment to long term increase of housing stock, this policy amounts to shovelling out darkness, rather than switching on a light.

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