IoD call for buy-to-let tax hike
Tax benefits for buy-to-let investors should be reined in to establish level playing field, recommends the Institute of Directors
The
Institute
of Directors has called for an end to lucrative tax breaks given to
buy-to-let owners.
Currently, property investors can offset the tax demands on their rental
income thanks to a break that allows them to deduct a large proportion of the
interest on their borrowings.
If the advantage was removed it would net the taxman an extra £1.9bn in
revenue.
The IoD said: ‘The imbalance between investments in financial assets and in
property is primarily a feature of a period of execptionally low interest
rates, but it is also caused by the tax regime which applies to traditional
buy-to-let investment financed largely by borrowings.’
Further reading:
Raise revenue
from CGT, says IoD