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Why landlords are so angry about losing their ability to offset finance costs against tax
Original Author: Rosalind Renshaw
For those struggling to understand exactly why buy-to-let landlords are so angry about the loss of their ability to claim tax relief for mortgage interest costs, here is an interesting – if tongue in cheek – explanation.
It goes something like this.
The Treasury has now announced that taxi drivers will no longer be able to offset fuel costs as an expense against their income.
The aim is to stop them having an unfair tax advantage, and to level the playing field with private motorists.
J Corbynski has welcomed the initiative, saying: “I see this as a perfect opportunity to raise tax from wealthy taxi drivers so that we can pump more money into improving public transport.”
A major accountancy body has pointed out that corporate taxi firms will not be affected and that they expect their members to be dealing with several enquiries regarding incorporation.
However, it appears that the governor of the Bank of England has warned that drivers will sell their taxis off en masse, while drivers themselves have warned that they will raise fares or get out of the industry.
Corbinski also said that passengers should have the right to buy the cabs that they are sitting in, with the amount of discount determined by the meter showing how long they have hired the vehicle.
The full story, which would have done the industry proud on April 1, is here
http://www.propertyindustryeye.com/landlords-angry-losing-ability-offset-finance-costs-tax/
