A petition signed by well over 28,000 and calling for the reversal of tax measures introduced to penalise landlords has been dismissed by the government.
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.