NLA make three requests to Treasury
Looming changes to mortgage interest tax relief in March’s Budget statement have prompted three requests to the Treasury from the National Landlords Association (NLA).
From April, the rules which currently allow landlords to offset all their mortgage interest against tax will be phased out.
By April 2020, once the tax relief has been completely withdrawn, the NLA warns it is likely that higher-rate tax payers will only receive 50 per cent of the relief that they currently get.
In a statement, the NLA said: “Whilst drawing attention to our past submissions in which we suggested alternatives to Section 24, in this submission we have only asked for three very specific things.”
1. The introduction a Capital Gains Tax cut or taper.
The NLA argues that this will help ‘facilitate the disposal of poorly performing property and diversify people’s financial investment portfolio’. Costings have been sent to the Treasury which ‘show this need not be as expensive as some fear.’
2. The extension of business asset rollover relief to allow restructuring of portfolios:
The NLA argues that this will facilitate increased sales of property and greater mobility between tenures, whilst allowing landlords to reduce the gearing of their portfolios, thereby protecting against market shocks and improving stability.
3. The reintroduction of the Landlords’ Energy Saving Allowance (LESA):
New tenancies will not be allowed to be granted for properties with Energy Performance Certificate (EPC) ratings of F or G from April 2018. Following the collapse of the Green Deal, the NLA is urging the government to help mitigate the major capital costs over 300,000 landlords are facing in order to stay in business.
The statement says the NLA recognises that the government’s priorities lie elsewhere, and acknowledges that it is ‘preoccupied with Brexit’ whilst the country’s finances are ‘stretched to breaking point’ with ‘multiple demands and unacceptably high debt levels’.