The Section 24 parliamentary petition, seeking to persuade MPs to reinstate mortgage interest tax relief for landlords, has fallen far short of its 100,000 target.
The petition, from Midlands landlord Simon J Foster, urged the government to reverse the Section 24 tax change.
It closed yesterday with only just over 40,000 signatures; had it won 100,000 signatures it was expected to have triggered a parliamentary debate on the issue.
Before Section 24 was introduced in 2017, landlords were able to deduct mortgage interest from their income 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.
Some months ago the government made an official written response to the petition, insisting its tax policy was fair and had to be seen not only in the context of landlords but as part of tax policy across the housing market.
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No big surprise 🤔 we all are making our own decisions on if to stay or go, everyone’s reasons will be based on their current health, age, family needs etc…… but I feel the government will look at stepping in to stop us selling or raising rent … aka… SNP style 😱😱
Me to. The only way is out.
We are being screwed either way. By reducing the CGT band more people are paying at the higher 28% rate, and doesn't the gain put many people into a higher income tax bracket as well when gains are added to income. So instead of many years of income tax on profits and VAT on fees, additional stamp duty and income tax on letting agents the government is taking a quick grab on CGT, which to a large extent is a tax on inflation.
I’m well into selling up now let them house these poor tenants joke this country can’t wait to leave
Would have made no difference at 200000, the debate would have went nowhere
Exactly, not the right climate in terms of cost of living, or pre 2024 GE to be seen to be giving LLs a tax break. No chance whatsoever even if every LL in the country signed it.
This isn’t correct. It’s a 20% tax credit. The interest was deductible as an expense. Now it’s calculated in the profit figure and you can only deduct 20% of it
Pushing landlords with high interest charges into higher tax brackets and charging them tax on an otherwise legitimate business expense.
You honestly can’t make this up. Our tax bill hasn’t doubled it’s actually quadrupled under this S24.
As with all these measures targeted at Landlords or specifically PRS, if I was a tenant I'd realise this will directly impact rent rises now and in future. So the government aren't doing tenants any favours, just appearing as if they are on the tenants' side by targeting Landlords instead of tackling the dire housing shortages which also impact rental prices.
The problem is that a great many tenants (and even home owning young people like my children) do not know about section 24 or what it actually means (obvs my kids do now because I have explained it). They just hear the continual narrative from the likes of Gen Rent and Shelter about exploitative landlords. What needs to happen is for a more balanced narrative to be in the public domain. This will not happen easily as it is not as sensational as stories of families being evicted for "no reason".
Landlord apathy ! - nothing new, sadly ;-(
NRLA did not make efforts to voice for PRS landlords apparently, why NRLA did not stand up? The government did not recognise how much PRS landlords contribute to the country's economy; losing PRS landlords, lots of small, medium to big business people will lose huge revenue, including retailing, goods and services that support the PRS, like plumbers, furnitures retailers, decorators, handymen, builders, etc.. the government housing and economy ideology is a mess. Innovation and creativity is the answer to grow economy, this is the direction the government should focus on. To steal and grab the small pie from PRS is destroying economy. Government philosophy is a tax grab and has no strategy. Anti- landlords is a hate crime. Shouldn't government stop using housing as a political vehicle to collect votes. This is not a strategy to grow economy, it is a strategy to stay in political power.
Only of course it isn't a vote winner, how many tenants are ever going to vote tory ? and now they are also losing the votes from landlords and business as well, they know the s@@t is going to really hit the fan in a couple of years from now, civil unrest just like the French I fully expect, a gift for labour
@AT, we need a good leadership who has a great vision. Since 2015 Finance Act, PRS have been targeted and being hammered left and right. The amount of tax and business received from the PRS, how can anybody anti-landlords? It is the question of lack of money ever since the pandemic and the war. Staring at the old pie of PRS is not going to deliver the answer we need.
Well Done Simon for Giving it ago . There was an outside chance of a Debate in Parliament. Someone in Parliament must realise if Private Landlords are forced to sell up due to Tory Policies causing 100,000 of Tenants needing to be Re housed it is not really a vote winner.
For those of you that did not sign why ?
Also where was the NRLA
40,000 signatures, including mine. Why so low? IS it because only 40,000 landlords were aware of this petition? Or just 40,000 landlords with BTL mortgages? I cannot understand why so low? We only have 2 properties in London with substantial rent, but between a couple we are not high bracket but can be in the future. I hope LL who have paid off their mortgages have not abstained from signing the petitions. Surely there are more than 40,000 landlords in the UK??
There is a new Section 24 petition which expires 1/3/2024 see:
search google for it as yo cannot put url's in chat :(
search for: parliament petitions 642881
The title of the petition is:
"Reinstate tax relief allowing mortgage interest to be set against rental income"
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