Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on permitting private landlords to offset their mortgage interest payments against rental income before income tax is calculated.

Landlords are able to claim tax relief on finance costs (including mortgage interest payments) for their rental property at the basic rate of income tax.

From 2017, the Government phased in a set of reforms to restrict finance cost relief to the equivalent of the basic rate of income tax. This ensures fairness in the income tax system, as previously higher rate taxpayers received a more generous tax relief than those on lower incomes. The reforms mean that all landlords will now receive the same amount of relief. It also reduces the disparity in income tax treatment between homeowners and landlords.

The Government believes that only a small proportion of landlords will be affected by this measure. However, the Government will keep this under review and any decisions on future changes will be taken in the context of the wider public finances.