Petition to reverse Section 24 forces government to respond

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A petition urging the reversal of the controversial Section 24 tax changes for landlords will get a written response from the government after topping the necessary 10,000 signatures.

Simon Foster’s e-petition has now gathered 17,266 names, up from 9,811 signatures just before Christmas. Landlords in Orpington, Ilford North, Ruislip, Enfield and Harrow have been particularly keen to put their name to the petition, where at least 100 have signed up in each constituency.

Finance costs

The Midlands-based investor wants the government to reinstate the ability of landlords to set the full amount of mortgage interest against rental income before tax is calculated. Announced by George Osborne in 2015, the tax relief was replaced by a basic rate reduction from their income tax liability for their finance costs of 20%.

Foster explains that as a small, well-established private landlord, he is now struggling to make any money from letting properties. “Unless the ability to offset mortgage interest against rental income is reinstated, I will – like many – be forced to sell my properties,” he adds. “This could reduce the number of properties available on the private rental market.”

Parliamentary debate

The government has promised to respond in the next 16 days to the petition which runs until 10th May. If it tops 100,000 signatures by then, it will force MPs to debate the topic in parliament. Some e-petitions are considered for a debate before they reach 100,000 signatures, but this is rare.

You can sign the petition here.

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