Tax moves afoot to help give landlords financial relief says Gove
The Government is looking at how to give landlords tax breaks in order to reassure those who are looking nervously at the looming radical renting reforms for the sector, changes which are due to sweep in next year.
The Government is looking at how to give landlords tax breaks in order to reassure those who are looking nervously at the looming radical renting reforms for the sector, changes which are due to sweep in next year.
During the annual NRLA conference in Birmingham yesterday, housing secretary Michael Gove (main picture) said he had been in conversation with HM Treasury to explore how landlords can be given more tax incentives.
Gove made the comments in response to several questions from both delegates and NRLA chief Ben Beadle who all wanted to know – to loud applause from the floor each time – whether the mortgage interest relief (MIR) removed by George Osborne in 2015 would be reinstated.
This allowed landlords to offset their mortgage interest payments against their personal tax bills, and is the main reason so many more investors now own properties via limited companies.
“I can’t make the promises on tax that so many of you here would dearly like to be given, but we do listen to other proposals that might be able to help.”
Gove said a reinstatement of MIR was not on the cards but in answer to a question from Beadle asking why landlords should not be able to offset finance costs in the way other businesses can, he said: “I do recognise that since 2015 the gradual withdrawal of MIR has been difficult for many within the private rented sector.
“There are two factors in play here [why the Government won’t be reinstating it] – one is that many older landlords have properties on which they had relief; and why should a landlord have a more favourable tax regime than those seeking to buy properties as a home for themselves?”.
On a more political and taxation level, Gove also said to restore MIR for landlords would be “very expensive but I am conscious that keeping the private rented sector healthy is important and while we have no plans to restore MIR we will look at how the tax regime can support responsible landlords.
“And we are in discussions with the NRLA and other MPs and the Treasury about what can be done.
“I can’t make the promises on tax that so many of you here would dearly like to be given, but we do listen to other proposals that might be able to help.”
