Tax on property transactions is a contentious issue, and the government is again being urged to rethink the way it taxes property investors to spark the housing market.
In a plea to the government to reduce stamp duty charges to ease pressure on the UK property market, Mortgages.online, an online mortgage broker, believes the buy-to-let market should be a major focus. Stamp duty was last increased for all property purchases in 2014, while April 2016 saw the second home surcharge introduced, meaning that a 3% additional charge was payable for any buy-to-let or additional properties bought. This came in alongside the announcement of progressive tax relief cuts for landlords ' Section 24 ' which is currently in phase three and will mean that landlords will only be able to claim income tax relief on residential finance costs at the basic rate of tax by April 2020. But commentators have been quick to point out that the increased stamp duty payable on buy-to-let purchases, and the removal of the ability to offset mortgage costs has put many investors off the property market, with a knock on effect of reducing the stock of rental properties.
The rallying cry from the industry is clear - relief for buy-to-let investors and measures to stabilise the economy with clarity once and for all on Brexit, are both needed urgently.
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About the Author: Glen Callow
