The Residential Landlords Association (RLA) has said that HM Revenue & Customs (HMRC) should use the extra cash raised from its recent Stamp Duty Land Tax (SDLT) reforms to abolish forthcoming changes to mortgage interest tax relief.
Under current Government proposals, the RLA estimates that the upcoming changes, which are due to take effect in April 2017, will push more than 2 million landlords up into a higher tax bracket.
It says that landlords across the country will have ‘no choice’ but to push up rent prices in order to recoup their additional costs if reforms to the tax relief go ahead.
David Smith, policy director at the RLA, said: “The Government has received far more money than it expected (in SDLT).
“We urge them to use this to support the country’s tenants and undertake a fuller impact assessment of a [mortgage interest tax relief] policy that has the potential to cause untold damage to the rental market.
“In raising nearly twice as much in just nine months as the tax was predicted to make in one year, this Stamp Duty windfall gives the Government a chance to back the rental market and support the development of new homes which we desperately need,” he added.
The comments come after HMRC’s own data revealed that the Revenue raised an astonishing £8.28billion in SDLT last year.
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