Chancellor unlikely to reverse predecessor’s tax changes
The UK Chancellor, Philip Hammond, looks unlikely to reverse George Osborne’s tax changes on private landlords in tomorrow’s Autumn Statement.
In a letter to private landlord Dr Rosalind Black, responding to her report on the impending tax change, the Treasury said that it stands by the reasons why the change is being implemented.
The ability of private landlords to set mortgage interest costs against tax will be progressively phased out from next April, with landlords from 2021 being given the equivalent to basic rate tax.
The Treasury said, “The Government wants to ensure that landlords with the largest incomes no longer receive tax relief on their finance costs at a higher rate than those with lower incomes.
“Additionally, income tax relief for finance costs is not available to ordinary home buyers and not available to those investing in other assets such as shares. By restricting the relief to the basic rate tax, the Government is aiming to reduce these distortions.”
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