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Review tax laws, says NLA

The National Landlords Association is urging the government to review taxation in the private rented sector following reports that Revenue & Customs is targeting 80,000 buy-to-let landlords who may have claimed too much tax relief. The NLA says that because the government department al-ready has the rental sector in its sights and given its importance tothe economy and the mobility of labour, this would be a good time to review tax laws and the tax relief on offer.

David Salusbury, chairman of the NLA, says: “While it is right for Revenue & Customs to look at whether landlords are paying the correct levels of tax, we are encouraging it to take a light touch. We also believe the time is right for a proper economic assessment of taxation in the rental sector, as there are one or two anomalies that should be looked at.”

He warns that the absence of roll-over relief from Capital Gains Tax may be acting as a disincentive to buy-to-let investors.

This means that if a landlord buys a property in an area of low tenant de-mand and has difficulty in renting their property, there is no relief from Capital Gains Tax should they decide to sell it and buy another in an area of higher demand.

He adds that there is also no tax relief for landlords who opt to manage properties themselves, whereas those who use letting agents can offset these fees against tax.


Abbey confirms 100% launch

Abbey has confirmed that it will be returning to high LTV lending with the launch of a 100% product.The lender has not been in this sector of the market since the early 1990s, and says the launch is “significant”. The product, which is available to intermediaries and in Abbey branches from June 13, has no […]

Sub-prime definitions no easy task

The Council of Mortgage Lenders plans to simplify sub-prime labels, but with lenders’ differing attitudes to risk and understanding of adverse, the devil will be in the detail, says Katie Tucker

Consumers seem optimistic about Blair’s departure

The Nationwide consumer confidence index rose nine points in May, reaching its highest level in 18 months.Confidence rose most sharply in the week that interest rates increased and Tony Blair announced his departure date from Downing Street.The expectations index, charting people’s sentiment about their future financial situation, rose by six points to 97 in its […]

Swift launches summer bonus

Swift Advances has launched a summer bonus for intermediaries with an additional 1% being paid on completed unregulated secured loan cases until the end of July. The additional 1% commission is payable on all non Consumer Credit Act second charges signed up and completed by July 31. All intermediaries need to do is send their […]


Case study: administration — managing group life schemes

Our client leads the global market in high-tech electronics manufacturing and digital media. The trustees of the company’s final salary pension scheme insure death-in-service lump sum and dependants’ pension death benefits for active employees, as well as dependants’ pension benefits for deferred members (those who have left service).


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