My thanks go to Accountancy Age for providing the original article this blog post is based on.
More than 27,000 individuals (as at 10 September) have signed up to an online petition calling on the George Osborne Chancellor to reverse proposals announced in the Summer Budget to restrict the tax relief landlords can claim on loans used to finance the purchase of rented properties..
In July Mr Osborne said the move was designed to limit the advantage that these individuals currently enjoy over those purchasing their own home. At the moment, buy-to-let landlords own 15% of residential property.
Osborne stated: ‘Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot. And the better-off the landlord, the more tax relief they get.
‘For the wealthiest, every pound of mortgage interest costs they incur, they get 45p back from the taxpayer.’
The current tax system supports landlords over and above ordinary homeowners. Landlords can deduct costs they incur when calculating the tax they pay on their rental income. A large portion of those costs are interest payments on the mortgage.
In order for the petition to be considered for a parliamentary debate, it needs at least 100,000 signatures.
The recently launched ‘Say No to George’ campaign demands a reversal of the planned tax relief restriction. It was set up by a group of landlords who seek to argue that the measure will damage letting agents, estate agents, tenants and first-time buyers, among others.
The petition will remain open until 27 January 2016, giving a further four months to reach the target which will trigger a possible debate in parliament.
Please see my blog post from 19 August giving further details on the proposals >> here
The campaign website is here >> http://saynotogeorge.co.uk/
The parliamentary petition is here>> https://petition.parliament.uk/petitions/104880