Treasury defends tax changes for landlords as petition sails past 14,000 signatures

A petition calling on the reintroduction of full mortgage interest relief for landlords and the abolition of the 3% Stamp Duty surcharge has attracted over 14,000 signatures.

The petition has also received a government response.

This defends the changes it has introduced, saying: “The Government introduced changes to finance cost relief as part of a package of measures at Summer Budget 2015 to help reduce the deficit and rebalance the economy.

“By restricting landlords’ finance cost relief to the basic rate of income tax we are helping to reduce the advantage landlords may have over home owners in the property market.

“Income tax relief for finance costs is not available to ordinary home buyers.”

The Treasury response continues: “Previously, landlords could get relief on their finance costs at their marginal rate of income tax.

“By restricting finance cost relief to the basic rate, all individual landlords will receive the same rate of income tax relief on their finance costs.

“Landlords can still claim income tax relief at their marginal rate of tax on day-to-day running costs incurred in letting out a property, such as letting agent fees and replacing furniture.

“Finance costs are different to other expenses, as having a mortgage allows the landlord to purchase a more expensive property and incur larger gains on the investment than they would have done without it.

“Using actual self-assessment data, HMRC estimate that only one in five landlords will pay more tax on their property income because of this measure.”

On the introduction of the Stamp Duty surcharge, the official response says: “While it is right that people should be free to purchase a second home or invest in a buy-to-let property, the Government is aware that this can impact on other people’s ability to get on to the property ladder.

“The higher rates are part of the Government’s commitment to support first-time buyers.”

The petition, placed by landlord Mark Homer, has until November 14 to run. If it attracts 100,000 signatures, it will have to be considered for debate in Parliament.

Petition: Reintroduce full mortgage interest relief and drop the 3% stamp duty surcharge

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5 Comments

  1. Barry20

    What a surprise this Government regurgitating its same old sophistry, and specious rhetoric.

    Lies, damn lies, and Government statements!

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  2. The_Maluka

    I am all for a level playing field, now let all landlords have their capital gains free of tax, just like owners.

    And talking of level playing fields, how does imposing extra stamp duty for landlords and stamp duty free for fist time buyers help to level the playing field?  My logic is different from the Government’s.

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  3. kittygirl06

    They keep saying its to help FTB but that is **** .  Its due to tax grabbing and helping their corporate friends why else is it not for ltd companies?.

    They are taxing people and small businesses out of existence and they really do not care of the damage that will be done.

    What is the point of allocating money to the homeless when their own policies create the growth in this area.

    Yes they would like more homeowners but the real reason for this is to take it from them towards the end, people are wising up to this now .   They really want to bring in CGT for all homeowners but are afraid to due to lost votes.

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  4. singlelayer

    #FreeTommy and we can sort out this housing mess when the revolution comes.

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  5. Deltic2130

    This government are lying, ignorant hypocrites, spouting the usual worthless tripe. I hope they suffer for it. They’ve now joined in with the lunatics claiming homeowners don’t get MIRAS. Of course they don’t! It used to exist to balance the tax homeowners had to pay on ‘imputed rent’ which doesn’t exist anymore, hence its removal. Also, the government seem to be a bit thick/misinformed as they fail to notice that NO personal buyer of something gets relief on their interest, but commercial activities doing the same thing DO! I don’t get interest tax relief on buying a personal car, but if I was a car hire company I would! Idiots.

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