Mortgages: Private Rented Housing

(asked on 25th April 2019) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of taxation and mortgage relief changes for buy to let property on the reported increase in the number of properties that are holiday lets; and if he will make a statement.


Answered by
Mel Stride Portrait
Mel Stride
Secretary of State for Work and Pensions
This question was answered on 30th April 2019

In Budget 2017 the Chancellor announced a restriction to the relief available for finance costs for residential landlords. The restriction is being phased in over 4 years and ensures that relief for finance costs is only available at the basic rate of income tax. The restriction makes the tax system fairer by ensuring landlords with higher incomes no longer receive the most generous tax treatment.

HMRC estimates that only one in five landlords will pay more tax as a result of this measure, once it is fully implemented. Self-assessment data for the relevant years is not yet available.

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