The changes to Section 24 taxation have hit landlords hard, with many now struggling to profit from their rental investments and some contemplating selling up.
Simon Foster, a landlord from the Midlands, has launched a parliamentary petition to call on the Government to reverse these changes.
The petition requests that landlords be allowed to set the total amount of mortgage interest against rental income before tax is calculated. This would help landlords to recoup some of their costs and would help to keep more rental properties in the private market.
Simon Foster believes that the Section 24 tax changes are detrimental to private landlords and their businesses:
“Unless the ability to offset mortgage interest against rental income is reinstated, I will, like many, be forced to sell my properties. This could reduce the number of properties available on the private rental market.”
The petition has already gained thousands of signatures and momentum as more landlords become aware of these changes impact on their businesses.
His petition has reached almost 25,000 signatures and will run until 10 May 2023. A Government response will be made because it has reached 10,000 signatures, although a previous reaction to a similar petition didn't make any changes. If it reaches 100,000 signatures, the petition will be considered for debate in Parliament.
It is essential that the Government listens to landlords' concerns and takes action to alleviate their financial burden. It remains to be seen if the petition will successfully persuade the Government to reverse its Section 24 tax changes.
Sign the petition here.
