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Stop The Tax Grab - Landlord’s petition to reverse law change

Landlords are being encouraged to sign a petition calling on the government to reverse the section 28 tax change which had ended their right to offset mortgage interest against tax.

Before Section 24 was introduced in 2017, landlords were able to deduct mortgage interest from their ncome tax - at that time it was also  possible to offset mortgage application fees and some other loans. 

Now tax is payable on all rental income upfront, even if - combined with an income from a traditional job - it moves the landlord into a higher tax bracket. Instead, landlords now have only a basic rate reduction from their income tax liability for their finance costs of 20 per cent.

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The petition, on the Parliamentary website, is by Midlands landlord Simon J Foster and reads: “We want the Government to reinstate the ability of landlords to set the full amount of mortgage interest against rental income, before tax is calculated.

“Like many self-employed business people I am a small, well-established private landlord that is now struggling to make any money from letting properties.

“Unless the ability to offset mortgage interest against rental income is reinstated I will like many be forced to sell my properties. This could reduce the amount of properties available on the private rental market.”

You can sign the petition here: https://petition.parliament.uk/petitions/627785

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Landlord Today returns on Wednesday December 28, and wishes all readers and their families a fabulous Christmas and a well-deserved break!

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    Welcome to the party Landlord Today - this story is several days old already!

    There are over 2 million private landlords & only 13k have signed this. Shelter & GenRent are SO much better than we are at getting their narrative across. We need to work together to defend our businesses so even this doesn't affect you we can use it to send a message to Govt.

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    Agreed. It would have been so nice for this site not only to have got this out at the earliest opportunity but also beat the drum very loudly. Now you’re off for Christmas!

     
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    Any help I’m here to support anyone who wishes to campaign
    Pls let me know

     
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    Section 24 has directly affected rent rises in many cases. I have resisted a rise currently to help Tennants in these difficult times but may have to increase rents next year with the interest rate rises on top of Section 24 tax implications.
    I noticed that some other Countries had to reverse a similar tax change as it affected rents and housing availability. But this is obvious like many other anti-Landlord measures.
    Hope you all have a good Christmas Break & New Year

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    What is Section 28 ?.

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    I’m talking to family, friends and tenants about signing to get this unjust tax removed. It helps no one including tenants who suffer higher rents and limited choice. It only provides the haters with a little joy that they getting one up on the dreadful people they love to portray us as.

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    Signed it but I feel this government will change nothing, they need the money for starts and it sends the message out that they want too, it will come back to haunt them as we sell up and they need to provide hotel accommodation for the homeless.

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    Simon I think you used the wrong tense, not 'will come back to haunt them' rather 'has come back to haunt them'.

     
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    Have signed and also sent the link to all my tenants, That way at least it raises their awareness of the issue, and why their rents will have to go up.

     
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    It takes ages to optimise on your assets,
    when escaping being a Landlord.

    This Petition should be a CLASS ACTION against losses,
    from the Pandemic laws & Govt attack on Landlords.

    However, the liberal UK will only increase their attack over time.

    So GET OUT NOW and invest where your money is welcomed!
    (STILL DO THE CLASS ACTION... Landlords paid for the avalanche of funds,
    everyone else got!)

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    I see 4 reasons full landlords getting out
    (1) Retiring but as Andrew says not many like to do this, it’s our passion if you like.
    (2) Licensing Schemes not worth the expense, hassle and Criminalised just for providing Accommodation.
    (3) THE WHITE PAPER and Removal of AST’s and Section
    21 the very foundation of all private lettings.
    (4) Property Managers and Investors, hardly proper Landlords but in many cases had acquired most properties.
    Very simple model really had been buying the property with virtually no input, ok put down only 5% borrowed the rest on interest only Mortgage’s no worry about ever paying it back that didn’t matter until now.
    Borrow the money for 1 or 2% sometimes even less than 1%. I knew a guy that was costing the Bank money in other words they were paying him to have the loan.
    Let it out for Market Rent and pocket the big difference between that and the very small repayments. Hardly rocket science is it even I know that without ever to College or University. Then do it again & again one guy owned 300 properties and able to claim all costs and interest relief completely tax efficient. I call it the unacceptable face of Capitalism’s but really it was nonsense Regulators. Then Section 24 put the wind up them loosing a chunk of their profit to tax, unfortunately it hit others that were playing fair.
    Then the next big wallop put caused many to sell quickly the interest rate rises no sustainable for this model anymore, coming off a low fix and going to fix of 6%. Of Course they made the money when there was no regulation’s to Comply with.

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    Like I have put in another post you don't need a link. Just put " Re-instate Tax Relief on mortgages " into google or any search engine and the petition will come up.
    As petitions run for six months we have until May to stir up support from other landlords and agents.
    I have encouraged my family to sign also as they stand to gain in the end

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    The link at the end of this article works.

    Over 1,000 signatures in the last 24 hours. Hope it picks up!

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    I'm signed, I'll get other family members to sign as I see them over Christmas

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    Signed too.

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    Signed and written to MP.

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    Well. I have UK properties and pay UK NI and tax, but live in France so cannot vote on a subject which affects me.

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    1. This has been done multiple times with no result, the biggest being the one in 2016 that hit 100k but was then summarily dismissed by the govt.

    2. This reporting is shoddy. Section 28?? Spelling ‘income’ without the ‘i’? Do you proof-read anything??

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    True, but there's no harm in giving it another go

     
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    Yes true but if the same issue keeps on coming back again and again then it may just have an effect. It's clearly going to appear even more unfair with rising interest rates, some people's mortgages interest will be higher than the rents, but they will still have to pay tax, so that can't be right!!

     
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    The circumstances are different this time. Government are aware that private Landlord's are leaving. Accommodation in all aspects is a lot more front line currently.
    Will it make a difference, time will tell, but of course we need to keep trying.
    I've signed, have encouraged family and friend's to do the same and will be writing to my tenants to also sign, along with a notice that this is the reason I have to put rents up, again.
    Interest rates are not high. It is the Section 24 which is causing the issue. When else has anyone been taxed on unearned income!!

     
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    James, you and I together with lots of others were part of the Axe the Tenant Tax campaign with the rejection as you so describe. When Ireland, with it's somewhat less punitive version of S24, experienced near 50% rent rises over a few years, I wrote to my MP pointing out that fact and suggested that the UK learn it's lesson. I received a rather condescending reply from Jane Ellison at the Treasury staying that Ireland was "different" and that they had decided that S24 wouldn't have any adverse affects on rents. Blithering idiot - we are talking the basics of supply and demand and in that respect there is no difference.
    Ireland, as we know, has gone from bad to worse. There were just over 700 properties in Q2 available to rent across the whole country. They've now gone into full screeching U turn mode regarding landlords. Various mealy mouthed statements from Leo but basically they're trying to unravel all the damage caused. Too little too late though - the big landlords have now exited en-masse and they're struggling to get anyone else to pick up the reins. After all, if you bought a house say in 2000 for 100k, sold in 2021 for £300k, paid taxes etc, you're not going to restart again in 2023 with interest rates and house prices as they are - the numbers don't stack up.
    I just think we need to go through the same pain that they did over there, and we've still got a way to go. It may happen quicker as house building is way behind and there's a lot of newcomers these days

     
  • ecer ore

    nice post

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    Grumpy, I agree with a lot of what you say but not much house building here just loads of un-affordable Flats as Paul Shamplina reported and my findings as well a Studio £1500.pm and a one bed Flat £2’195. pm what use is building those or will they expect the tax payers to subsidise the Rent again. We are giving them houses for that kind of Rent and they can’t wait to get rid of us by every means possible.

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    Without Section 21 why would anyone buy. Look at the damage done to Tenants already, rents gone mad in London. Hundreds of landlords driven out because of Renters Reform Bill and Scrapping Section 21 so pointless. When more Properties were available they were much cheaper and Tenants could move, now they are stuck there and nowhere to move to, and next move will be more expensive anyway.
    So now bringing in law entitling them to stay but they can’t move anyway. Worse for landlords too if he ends up with Tenants he don’t like he is stuck with them, so he is expected to live under duress. The Landlord needs control of his property full Stop. Theresa May obviously didn’t know the Industry or the damage and homelessness she would cause when proposing this in 2019 and reaffirmed by Johnson who had an alternative motive, all this by a conservative Government that landlords depended their lives on.
    Removal of S.21 is getting close to S.22.

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    I couldn't agree with you more, Michael about the removal of Section 21. It simply does not make business sense to continue letting if it means that you lose control of your property. Landlords are being put in an impossible position.

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    I Think we need Mr Mike Weatherly who fought hard for home owners rights to ban squatters from taking over your home.
    Looks like this nonsense with the Renter Reform Bill is introduced it again.
    Suppose you have to work in some other part of the Country or abroad and let your house for 6 or 12 months without AST and S.21 how will you recover it. will you have to justify yourself to the Tenants and go through all that Court lengthy procedures and forced to rent some where else for yourself

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    Very good points. Section 21 represented an improvement on assured tenancies and has worked well for years.

    It is a fallacy that landlords evict tenants because they have asked for repairs. Landlords want their valuable properties to be in good condition.

    Unfortunately, Mike Weatherly died in 2021 from lung cancer.

     
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    Now when someone goes away to work the best option is to moth ball the home, too dangerous to rent it

     
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    What if you are using a house sitting service, that pays you.

     
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    Tenants are welcome to the Big New Developers Mr Johnson mates. They will be paying far more for less stuck in a multi Storey block of Flats.
    Looks currently like 40% more to rent one of those check it out for yourself.
    Also no better if you want to buy, they’ll sell you a 2 bed Flat for £465’000.00, you’ll be paying the Mortgage which is £1400’00 per month also as I understand it you’ll £560.00 per month must be for what you are not buying and £120.00 per month Service charge. Oh I nearly forgot, didn’t I tell you, you are only getting a 25% share of the Flat, very good deal that’s you well sorted for next 30 years, (you also have the pleasure of paying all Freeholders transaction costs in
    the future). Got luck missing you already.

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