The Chancellor’s plans for the country’s purse strings aren’t proving too popular with the buy-to-let community…
Tax relief disbelief
George Osborne’s Summer Budget saw all kinds of tinkering to buy-to-let legislation, the rental market a key concern and something the Conservative’s seemed keen to address.
We saw changes to Wear and Tear Allowance, Housing Benefit, housing associations’ and Inheritance Tax, but without doubt the biggest bombshell came with the proposals for tax relief.
Currently, as a higher rate taxpayer, you can claim relief on your mortgage interest payments up to a maximum of 45 per cent. However, under the plans unveiled by Osborne this will slashed to 20 per cent by April 2017… and a whole host of buy-to let investors aren’t too happy.
Ruhal to the rescue?
Rankled by the proposals, a landlord called Ruhal Uddin has taken to the web, and created an online petition to get the issue debated in the parliament.
Writing on the petition page he states: “We operate as sole traders and incur costs in the course of running our business. The planned restriction will unfairly target us by preventing us from offsetting costs in the same manner as other sole traders. We ask that the planned restriction be reconsidered as it has unfair implications.”
To get his wish he needs 100,000 signatures by 27th January 2016, and three months in he’s attracted a fair bit of support from the buy-to-let community. At time of writing the petition sits at 35,989 signatures and it’s rising everyday, illustrating the strength of discontent surrounding Osborne’s proposals.
Not so gorgeous George
In fact, so controversial have the tax relief proposals proved, a Say No To George site has popped up, aimed not only at buy-to-let investors but estate agents and tenants too. Looks like Osborne might have some more tinkering to do…
What do you make of the proposals? Will you be signing the petition against them? Let us know in the comments below.