Taxpayers navigating new buy to let tax rules will need publicity and support
The Government today announced restrictions to the amount of tax relief that residential buy- to-let landlords can claim for financing costs, principally mortgage interest. The rules will be phased in over 4 years with a gradual restriction of relief to the basic rate of tax.
Brian Slater, Chair of the CIOT’s Property Taxes Sub-committee said:
“It is vital that adequate resources are devoted to explaining and publicising these quite complex changes that will affect a very large number of smaller landlords.
“Previous changes to the tax rules for deducting the cost of providing white goods such as free standing fridges, cookers and soft furnishings were introduced without adequate publicity.
“Inadequate information leads to inadvertent non-compliance and confusion.”
1. As announced at the Summer Budget, the government is restricting tax relief for finance costs on residential properties to the basic rate of income tax from April 2017.
2. The Chartered Institute of Taxation (CIOT)
The CIOT is the leading professional body in the United Kingdom concerned solely with taxation. The CIOT is an educational charity, promoting education and study of the administration and practice of taxation. One of our key aims is to work for a better, more efficient, tax system for all affected by it – taxpayers, their advisers and the authorities. The CIOT’s work covers all aspects of taxation, including direct and indirect taxes and duties. Through our Low Incomes Tax Reform Group (LITRG), the CIOT has a particular focus on improving the tax system, including tax credits and benefits, for the unrepresented taxpayer.
The CIOT draws on our members’ experience in private practice, commerce and industry, government and academia to improve tax administration and propose and explain how tax policy objectives can most effectively be achieved. We also link to, and draw on, similar leading professional tax bodies in other countries. The CIOT’s comments and recommendations on tax issues are made in line with our charitable objectives: we are politically neutral in our work.
The CIOT’s 17,000 members have the practising title of ‘Chartered Tax Adviser’ and the designatory letters ‘CTA’, to represent the leading tax qualification.
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