The Residential Landlords Association (RLA) has asked for landlords’ help in proposing alternative “tax solutions” to the Government.
In the summer Budget the Chancellor announced a raid on tax relief for landlords’ finance charges. Between April 2017 and April 2020 restrictions on mortgage interest relief will be phased in, limiting relief to the basic rate of tax.
The landlord body has met with George Osborne directly and with officials from the Treasury and HMRC to discuss the changes. Although it has been told there will be no u-turn on the changes to mortgage interest tax relief proposals, it has been asked to propose other ‘tax solutions’ to the Treasury and will be doing so in the near future.
Subsequently the RLA is calling upon landlords to contact them if they have any bright ideas about how tax on rental income should be treated. For instance, allowing energy efficiency improvements to be written off against income as opposed to capital improvement will encourage landlords to invest in energy efficient measures.
The RLA calculates that a landlord with £150,000 buy-to-let mortgage on a property worth £200,000 could see his or her profit fall from around £2,160 to just £960 a year.
Landlord can email their ideas to firstname.lastname@example.org