The petition to secure government action over the Section 24 tax issue affecting landlords has passed the 16,500 benchmark but has a long way to go before hitting a 100,000 target.
At that point the government is effectively obliged to have a Parliamentary debate on the issue.
The petition, from Midlands landlord Simon J Foster, urges the government to reverse the Section 24 tax change. Before Section 24 was introduced in 2017, landlords were able to deduct mortgage interest from their income tax - at that time it was also possible to offset mortgage application fees and some other loans.
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.
Although various trade bodies and landlord publications have publicised the petition, take up has been limited - but the petition will remain ‘live’ until May 10.
It 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
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