Concern growing over new buy-to-let tax changes
There are growing fears in the property industry that the Government could be about to introduce a new buy-to-let tax assault on landlords.
Over the long weekend, the Law Society accused the Government of avoiding any property consultation in the way it introduces proposals. This, it warns, could mean profits from the sale of buy-to-let property could be subjected to income tax rather than capital gains tax.
Concerns
In the words of the Law Society, the measures were, ‘slipped in at the committee stage of a Parliamentary Bill, by the Government. This was instead of the formal legislation subject to a mandatory consultation period.
The Residential Landlords Association has now expressed its concern, calling on the Government to clarify amendments made to the Finance Bill 2016.
Concern growing over new buy-to-let tax changes
Writing in a letter to Chancellor Phillip Hammond, the Residential Landlords Association said that the amendments have blurred the distinction between trading profits from the purchase and resale of property and investment in property to let.
A statement from the RLA said, ‘at a time when the Government are attacking residential landlords through changes to Mortgage Interest Relief and Stamp Duty Land Tax, we have significant concerns of the potential devastating impact on the sector of further tax changes.’[1]
What’s more, the Association has moved to ask its members and others wanting to slacken the burden on the private rental sector to contact their local MP.
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/8/growing-industry-concern-over-new-buy-to-let-stealth-tax