With the budget round the corner many groups are lobbying the Chancellor George Osborne for tax breaks for their particular business interest. Private landlords have been arguing for a long time that they are being treated unfairly and the Residential Landlords Association (RLA) has called on the Chancellor to change the way they are treated by the tax system.
The issue is that private landlords are regarded as investors rather than businesses. Tax reliefs aimed at encouraging businesses to grow do not apply to private landlords. Many of our landlord insurance clients will feel that their let properties are very much run as a business and are completely different from less active forms of investment.
The RLA has drawn up proposals for reform, including roll over relief for capital gains when a rental property is sold to a first time buyer or reinvested in a rental property.
The RLA’s chairman Alan Ward argues that rents are being driven up by the shortage of supply of rented accommodation and the growing demand for it. He believes that treating landlords as businesses rather than investors would encourage them to invest in more properties. The RLA believes that every £1 invested in the sector provides a return to the economy of £3.50 through expenditure on building work and furniture.
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