Now tax is payable on all rental income upfront, even if – combined with an income from a traditional job – it moves the landlord into a higher tax bracket. Instead, landlords now have only a basic rate reduction from their income tax liability for their finance costs of 20 per cent.
The petition, on the Parliamentary website, is by Midlands landlord Simon J Foster and reads: “We want the Government to reinstate the ability of landlords to set the full amount of mortgage interest against rental income, before tax is calculated.
“Like many self-employed business people I am a small, well-established private landlord that is now struggling to make any money from letting properties.
“Unless the ability to offset mortgage interest against rental income is reinstated I will like many be forced to sell my properties. This could reduce the amount of properties available on the private rental market.”
You can sign the petition here: https://petition.parliament.uk/petitions/627785