Property Agents Urged To Back Petition
Property Agents are being urged to sign a petition launched by a landlord facing higher tax burdens which may force him to sell up.
The petition is calling on the government to reverse the Section 24 tax change.
Before Section 24 was introduced in 2017, property agents and 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.
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.”