Landlords Vow to Fight on Against Tenant Tax

Landlords Vow to Fight on Against Tenant Tax

Landlords who have joined together to protest against changes in taxation for buy-to-let investors have vowed to fight on despite a court set-back.

Axe the Tenant Tax, an umbrella organisation, had hired Cherie Blair QC to represent them in their quest for a Judicial Review. However, their plea was turned down by the Administrative Court.

Spokesmen for the group said afterwards: “We are outraged by the Court’s decision today. It has completely missed the opportunity to protect tenants, landlords and the housing market from the disastrous consequences of Section 24.

“From April 2017 the negative impact of this previously failed tax experiment from Ireland, where rents increased by 50% over a three-year period, will be felt far and wide.

“Sadly, it will be tenants who are hit hardest; they are set to see unprecedented rent increases over the coming months and years, which will be a very clear and direct consequence of this ludicrous legislation.

“For many, it will also mean the loss of their homes because vast numbers of landlords will be forced to exit the market.

“Hard-working, responsible landlords will have their pension plans in ruins, but the large corporations and the wealthiest in society, who can buy property without the need for mortgage finance, are systematically excluded from this unfair tax policy.”

If you are a buy-to-let landlord, either in Glasgow or in other parts of Scotland, who is thinking that now might be an opportune moment to cash in on your investment, then we would like to hear from you.

R&T Property Solutions are based in Glasgow and operate throughout Scotland and beyond.

For several months now we have been warning private landlords about the financial implications for them of Government policy, emanating both from Holyrood and Westminster.

We accept that Ministers have their reasons and we are not critical of them. However, it has been clear to us for some time that new legislation is liable to lead to an increased financial burden for landlords in the private rented sector.

Consequently, we are offering to help.

If you are interested in selling your portfolio, regardless of whether it is a single flat or a group of properties, then please get in touch with our team who are based in our Glasgow HQ.

We offer a fast, no-nonsense transaction. Normally we can deal with all the paperwork within 3-4 weeks but if you are in a hurry we might be able to conclude everything within seven working days.

If required, we will pay you in cash.

If your flats are occupied, we will guarantee to look after your tenants and ensure any transaction between us does not disrupt their life in any way.

If you’re still swithering, then perhaps the following statements from Axe the Tenant Tax might just provide the straw to break the camel’s back.

ATTA represents 150,000 landlords across the country who, between them, provide rented accommodation for over 1 million tenants.

Here is their take on the Government’s policy: “The Government plans to restrict mortgage interest expense deductions for private landlords to the basic rate of tax, claiming that landlords are taxed more favourably than home owners.

“However, the data either does not exist, or it just does not back up these statements. They are, in fact, fundamentally flawed, and no impact assessment has been carried out by the Government in relation to the impact on rents.

“The hugely important and Generally Accepted Accounting Principle (GAAP), where INCOME minus COSTS equals PROFIT, will no longer apply to individual buy-to-let landlords with finance costs.

“Simply put, Section 24 will mean that most landlords will have to pay extra tax of 20% or more of their annual mortgage interest and other finance costs. The tax they pay may be greater than their real profit, leaving them with a rental loss and a cash shortfall.

“And it’s likely to move vast numbers of landlords into the higher rate tax bracket, while simultaneously losing them their tax credits and personal tax allowance.

“Section 24 will increase rents substantially for tenants and make the UK housing crisis worse.

“This tax will have devastating consequences for some of the most vulnerable people in society. Huge numbers of landlords will be forced to raise rents or sell properties and evict tenants in order to pay this unfair tax.

“If the Tenant Tax is allowed to come into force from April 2017, the negative effects will be felt far and wide, and by millions of people for decades to come.”

R&T Property Solutions are investors in property and land, whether this is in Glasgow, Edinburgh or any other part of Scotland. We are in it for the long-term and are not put off by political change.

If you would like to receive a fair offer for your property then don’t delay, call our team today. Even if we don’t eventually do business together we will give you our best advice.