Landlords have banded together (including a number of our members) and an e-petition against the decision to change the rules relating to mortgage interest relief. has been created.
The petition titled ‘Reverse the planned tax relief restriction on ‘individual’ landlords’ says –
We operate as sole traders and incur costs in the course of running our business. The planned restriction will unfairly target us by preventing us from offsetting costs in the same manner as other sole traders. We ask that the planned restriction be reconsidered as it has unfair implications.
The Property118 forum is also promoting the e-petition and explains the Government proposals –
The proposal was announced in the Chancellor’s Summer Budget on 8 July 2015 and it will restrict relief for finance costs on residential properties owned by individual landlords to the basic rate of income tax. Finance costs include mortgage interest and interest on loans. Property Companies and Institutions who hold residential properties are not affected by the proposal.
The measure will be introduced gradually from 6 April 2017 and is ‘tapered’ over 4 years. By 2021, the full impact of the change will bite. Although the implementation of the proposal is to be phased, it is already causing uncertainty for landlords and tenants.
Yesterday, landlord Ros Beck said to the Guild of Residential Landlords –
Thanks very much for your help with this. We’ve only been promoting the petition since about 1pm and gained 3,000 signatures between then and now.
Looking at the e-petition this morning, there are now almost 4,500 signatures. If this reaches 10,000, government will respond and at 100,000 it will be considered for debate in Parliament.