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Petition against B2L tax relief changes passes 21,000 signatures

A petition to reverse the planned buy-to-let tax relief changes has passed 21,000 signatures.

Landlords say they have been unfairly targeted by the changes, which restrict the tax relief landlords can claim on property finance costs to the basic rate of income tax.

The petition 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 petition needs 100,000 signatures before it can be considered for debate in parliament.

The Government says just 18 per cent of individual landlords are expected to pay more as a result to the measure.

It says: “The Government is committed to a fair tax system so is restricting tax relief landlords can claim on property finance costs to the basic rate of income tax.

“Landlords are currently able to offset their mortgage interest and other finance costs against their property income, reducing their tax liability. This relief is not available for ordinary homebuyers and not available to those investing in other assets such as shares.”

It adds: “By unifying the treatment of finance costs for all individual landlords, the Government is reducing the distortion between property investment and investment in other assets, and reducing the advantage landlords may have in the property market over ordinary homebuyers.”

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  • Chris Hulme 1st September 2015 at 10:39 am

    Are we really comparing residential property owners with business property owners? Is the Governments next step to prevent car lease companies from offsetting their vehicle acquisition costs as well because the man in the street cant do the same on his private car? What planet is George Osborne on?

    Private investors shouldn’t really borrow money to invest in shares but if they did, why isn’t it a business expense? Perhaps it should be.

    In addition, Dividend income from shares is taxed as a top slice of income. Shares are just another asset class that attracts capital gains tax as well, much in the same way non main residential property does.

    If the Government has hinged its argument o these two points, it wont be long before this legislation is overturned.

    Petition Signed.