Debbie Abrahams – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Debbie Abrahams on 2016-03-24.

To ask Mr Chancellor of the Exchequer, with reference to paragraph 2.59 of the Summer Budget 2015, if he will make an assessment of the potential effect of restricting finance cost relief for landlords on the ability of private individuals who operate buy-to-let businesses with large private buy-to-let companies.

Harriett Baldwin

An individual’s property income is subject to a separate set of tax rules to those of a private company.

Once the changes are fully in place by 2020-21, all individuals will get finance cost relief at the basic rate of income tax, 20%. Incorporated businesses will continue to receive relief at the corporate tax rate which is currently 20% and due to fall to 17% in 2020.