Landlords with a petition called “Say no to George” require the government to reduce tax incentives for private landlords attracted more than 20,600 signatures. The government responded after this limit was exceeded by 10,000 signatures, but if this petition reaches 100,000 signatures than the next step will be for debate in Parliament.
Ministry of Finance said that landlords can recover their mortgage interests and other financial expenses with their income from property and reduction of the tax commitment. But this option is not designed for ordinary home buyers, but also for those who invest in other assets such as stocks. Landlords with the largest income, receiving assistance in their marginal tax rates of 40 or 45%.
By limiting the relief of the financial costs, which are available with the base rate of income tax of 20%, all the financial costs incurred by individual owners will be treated in the same way the tax system. These benefits recognize the economy because investment in real estate can bring and provide greater income to landlords, which, in this case, they will not have any benefit from higher rates of tax relief.
This treatment of financing costs for all individual landlords, the government carried out measures to reduce disturbance between investments and investments in other investment funds. But also reduce the advantage of landlords who may have on the property market over those ordinary home buyers. With this measure, individual landlords expect to pay more tax.
When it comes about the other measures of the summer budget, the office of Budget Responsibility does not adjust their predictions about house prices. Office of Budget Responsibility says that according to their assumptions expect the impact will be small when we talk about the housing market. Yet this change is introduced gradually from April 2017 in order to give them time to the landlords to make plans and to adapt well to these changes. For the best Tenant Eviction Service call us today on 020 8088 9015.