A new survey has revealed that the number one New Year’s wish from landlords is for the Government to keep buy-to-let tax relief on mortgage interest payments.
According to Simple Landlords Insurance, planned tax increases are the top concern for landlords in 2017, voted for by 47% of respondents.
The second biggest wish for the New Year is for an end to higher stamp duty charges, while in third place is a reduction in capital gains tax.
Tax relief on mortgage interest will be phased out starting April 2017, and it will continue to fall over the next three years. By 2020 landlords will be taxed on their income and for some this could push them into a higher rate tax bracket.
However, a separate poll of landlords by the Council of Mortgage Lenders found that half of landlords owned their properties outright and would therefore not be affected by the changes as their properties are mortgage free.
Since last April 2016, property investors looking to buy a second home have faced a 3% stamp duty surcharge as part of the Government’s plans to curb the buy-to-let market and free up property for first-time buyers.
Although the basic rate of capital gains tax dropped eight points to 10% in 2016, landlords were left out and pay 18% on residential property if they’re in the basic income tax band, or 28% in the higher band.
Despite the pressure, many landlords are still optimistic about the future, with 36% of respondents rating their confidence level in the year ahead at eight out of 10 or higher.
On top of that, 88% plan to remain as landlords for the next year and a third plan to increase their portfolios.
Jenny Mayes from Simple Landlords Insurance said: “We strongly urge Chancellor Philip Hammond to listen to landlords’ concerns. Landlords should be supported and recognised for their contributions in providing affordable housing, rather than burdened with unfair tax measures that will see them having to take considerable cuts to their income and being forced to pass some of this to their tenants.”
Loading ...