19 Oct

Buy-to-let tax is "unfair, unreasonable and unworkable"

Buy-to-let tax is "unfair, unreasonable and unworkable"

The new buy-to-let tax has been criticised by the Institute of Chartered Accountants (ICA).

According to the accounting body, the introduction of the new tax could cause some landlords to be forced out of the rental market, as well as making stepping on the property ladder harder for first-time buyers.

It is expected the legislation will be introduced from 2017 and means that private landlords will no longer be able to offset the cost of mortgage interest against their tax liabilities.

The Institute has raised concerns the changes means that it will unfairly impact on smaller landlords, who may only own one or two properties, whereas larger companies will still qualify for tax relief.

"Far from being level, it leaves the playing field with a cliff edge in the middle," explained a statement from the ICA.

"Taxpayers will have priced and borrowed according to the tax relief they expected, and these borrowing decisions would necessarily have a long timeline. Many will not be able to restructure their debt."ADNFCR-1222-ID-801803506-ADNFCR

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