AS you know I signed the petition against the new unfair tax on landlords and have urged you all to do the same. Every day that passes seems to throw up more arguments how this is such a blatantly unfair tax grab but that alone will not stop its progress to law. However, I have had the below response from the petitions team:
You recently signed a petition on the UK Government and Parliament Petitions website to: Reverse the planned tax relief restriction on ‘individual’ landlords: https://petition.parliament.uk/petitions/104880
The Petitions Committee considered this petition at its meeting on Tuesday 8 September.
The planned tax relief restriction is part of the Finance Bill currently being debated in the House of Commons. This Bill will be looked at by a Public Bill Committee – a group of MPs who go through a draft law in detail and debate it.
The Public Bill Committee can receive views from the public now.
You can find out how to send your views to the Public Bill Committee here: http://www.parliament.uk/business/news/2015/july/have-your-say-on-the-finance-bill-/
You can follow the progress of the Finance Bill here: http://services.parliament.uk/bills/2015-16/finance.html
Because the issue is currently being looked at in Parliament, the Petitions Committee decided not to take any further action on this petition. You can see all the decisions it made at its meeting here:http://www.parliament.uk/business/committees/committees-a-z/commons-select/petitions-committee/news-parliament-2015/8-sept-committee-decisions/
Click this link to view the petition “Reverse the planned tax relief restriction on ‘individual’ landlords”:
The Petitions team
UK Government and Parliament
That tells me that at least it will be debated and we can send our views to the Public Bill Committee. I’ll be sending my representations today and I urge you to do the same. My arguments are:
1: I am a working landlord who owns let property as an alternative to underperforming pension plans. This new tax threatens my pension and retirement. I do not have any alternative because at 43 I am realistically too old to start investing in pension plans for my retirement.
2: If the Government maintains the tax to ‘level the playing field with home owners’, then remove Capital Gains Tax from the sales of our let properties. At least then I can consider selling properties and investing in another class.
3: Taxing mortgage interest simply does not make sense. It is a direct cost to me as a landlord, operating property rentals as a business. Direct costs should be removed from taxation. I should be and I am happy to be taxed on profit. This new tax means I can make a loss and still be ordered to pay tax on it. That is unfair any way you look at it. It threatens my own home and family’s financial security.
4: I will be raising rents accordingly to meet the new tax requirements. That will put more pressure on the rental sector and price the most vulnerable out of housing completely. Does the Government have a plan how to house the many tens of thousands of families and DSS tenants that will no longer be able to access private rented accommodation because landlords will take working professionals as they will be the only ones able to afford renting? Does the Government accept the Housing Associations, which already heavily rely on the private rented sector, simply will not be able to cope with the increased demand? Homeless living on the street will lead to more crime etc. are the councils and police forces ready for this? Does the Government accept the social cost to deal with the fallout of this policy will be enormous and likely many more times the tax collected from landlords. And how will the Government deal with the landlords that are currently paying taxes and delivering services who will go bust – will they tax them to financial ruin and put them on benefits?
5: The retrospective nature of this tax law is punishing landlords who invested in property previously long before this tax was considered. At least adapt the law so that new properties purchased and rented are the only ones affected. That way my pension remains safe and secure and I will clearly not be investing in property any further.
6: If private landlords stop buying property (1 in 10 purchases) is the Government ready for the construction industry fall out?
7: Does the Government accept that the wealthiest landlords – those that own properties outright – will face no change in circumstances? It is only small or middle level landlords operating as businesses or looking for pensions like myself who need to borrow money that will be hit by the tax and possibly ruined financially? This is clearly the wealthiest protecting their own interests – and the wealthy that can buy more properties outright will become more powerful landlords quickly and be able to raise rents accordingly as competition drops.
I urge you all to send your own concerns to the email address above and keep lobbying your MP to get this unfair tax law dropped or at least amended to be fair in line with residential property ownership.