The National Landlords Association (NLA) has put out an urgent call urging all private landlords to lobby the government via their MPs over the proposed taxation changes for rental property announced in the Chancellor’s Summer Budget.
Contrary to the Mr Osborne’s claim that the changes would affect only around one-fifth of private residential landlords, it seems that this figure is more likely to be around 60% and for many they will result in swingeing tax increases.
It is only now that the severity of these proposed changes are beginning to dawn, and the drastic effect they will have on the private rented sector (PRS) – “game changing” is the description being bandied around. Landlords are feeling angry about the way they have been misled and the deceptiveness in the way this was introduced.
The NLA has said it will fight government over these proposed changes in Clause 24 of the Finance Bill and is urging all landlords to follow suit with support.
In his budget speech George Osborne said that that from 2020 mortgage interest relief for residential landlords would be restricted to the basic rate of income tax. In reality the proposals are not as simple as they appear from this. Landlords with borrowings will effectively end up paying tax on total rental income as opposed to profits, and these changes will hit hardest those on the higher rate tax bands and with large borrowings.
In the budget announcement Mr Osborne also spoke of his intention to scrap the annual wear and tear allowance, an allowance which gives a 10% reduction in rental profits before tax, written off as notional wear and tear for fully furnished lettings. This will go.
The NLA is suggesting that landlords provide their MPs with real evidence of how the Budget changes will affect them and their tenants, as many of them will be as unaware, as many landlords are, of the implications of this to the PRS, its landlords and tenants.
Carolyn Uphill, NLA chairperson has said:
“You must stand up for your rights and the good of the industry – don’t leave this for others to fight. We all need to act now by letting our MPs know our concerns via NLA Lobby, to get them on our side and be our voice in Parliament. By working together, your contribution can make a difference and influence change,”
“These changes will have far-reaching consequences for the private rented sector and we need to put more pressure on policy makers to make sure they understand the impact the Chancellor’s tax hike will have.”
Write to your MP: https://www.writetothem.com
Sign the campaign: https://petition.parliament.uk/petitions/104880
— LandlordZONE (@LandlordZONE) September 25, 2015