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Monday, September 05, 2016

Law Society slams tax changes

It's not what you do but the way you do it is the essence of the law society objections to the Governments proposals to change the way that buy-to-let landlords are taxed on their income.  Currently, landlords are able to off set the interest they pay on their loans against their rental profits.  The Government are looking at bringing in the Finance Bill to change all this so that landlords will no longer be able to deduct mortgage interest payments against their rental profits.  Instead this will be replace with a tax credit equivalent to the current basic rate of tax of 20%.

Finance Bil changes slammed

The Law Society has recently commented that amendments to the Finance Bill were slipped in at committee stage which potentially sets up a disturbing precedent by avoiding proper scrutiny and consultation.  if the correct procedures are not followed the Government may risk a High Court Challenge however if the contraventions only relate to precedent it is only the sensibilities of the legal profession that may be at risk.  In respect of these legal shortcuts Law Society chief executive Catherine Dixon commented:

'The way these changes were introduced, in particular without consultation on the draft legislation before it was added to the bill at such a late stage, starts to feel like legislation by stealth.
'No matter what the policy proposals, proper consultation and process is vital to maintain public confidence in our democratic institutions.'

To read the Law Societies comments on the Bill

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