Growing industry concern over new buy to let 'stealth tax'
There is growing concern across the industry at the fear - which we reported yesterday - that the government may be introducing a new buy to let tax burden.
Over the weekend the Law Society accused the government of avoiding property consultation and scrutiny in the way it introduced proposals which may mean that profits from the sale of buy to let property could in future be subject to income tax rather than capital gains tax.
The measures have been, in the words of the Law Society, “slipped in at the committee stage [of a parliamentary Bill]” by the government, instead of being part of the formal legislation which is subject to a standard consultation period.
Now the Residential Landlords Association has voiced its concern, and wants the government to clarify the amendments recently tabled to the Finance Bill 2016.
In a letter to Chancellor Phillip Hammond, the RLA says the amendments appear to blur the distinction between trading profits from the purchase and resale of property, and investment in property to let.
“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” says a statement from the association.
It wants its members and anyone else seeking to reduce the burden on the private rental sector to write to their MP on the subject.