The following is a press release I put out recently. Please read and sign as soon as possible!
International property expert and Executive Chairman of Wealth Dragons Limited, Vincent Wong, is urging British people to sign a petition to challenge a new law that will penalise UK private landlords by heavily reducing the expenses they can offset against tax. Who will likely pick up the shortfall for this? Private tenants (who currently make up 22 per cent of the population*), because landlords will end up increasing rents to make up the shortfall.
Over 55,000 people have already signed this petition to date but with only seven days pending until the cut-off date, Vincent is proactively urging more people to sign up. The petition needs to acquire 100,000 signatures, i.e. a further 45,000 names, to force a parliamentary debate on the issue.
According to Vincent “It is absolutely unfair that the Government has chosen to go down this route. In effect, they will be punishing entrepreneurial business people for being private landlords. Any self-employed person in the UK is legally permitted to include and duly offset all reasonable expenses relating to the business within their tax return. Why should private landlords be any different and be directly penalised? We are sole traders just like anyone else. Ultimately our tenants will also suffer.”
According to Petition.Parliament.UK, “The Institute for Fiscal Studies has stated, in response to the Budget, individual landlords are already taxed more heavily than other homeowners. The private rented sector is heavily reliant on individual landlords. The planned change is likely to result in higher rents due to landlords looking to offset higher tax liabilities.”
According to a recent report by international property consultants Savills, £74.8bn is now spent on private and social rents in the UK, supporting the general trend of “Generation Renters” who are unable to step onto the UK property ladder. Vincent added “If rents increase further, to allow for adjustments (if this law is passed), what will become of the British property rental sector? Brits are struggling to make ends meet as it is. Such short-sighted policy will lead to abuse of the social and welfare system and result in ‘Topsy-Turvy’ Britain. Please sign this petition. For every action there is a reaction and the ripple effect will be vast and messy. Unless 45,000 more people sign this petition before 27th January 2016, this law will be passed.”
Vincent Wong is one of the UK’s leading experts in the field of property investment and the pioneer of legitimising the use of Lease Option deals for residential properties. He is Executive Chairman and co-founder of Wealth Dragons and has inspired and helped countless people kick start their property businesses throughout the UK, Europe and South-East Asia.
To sign this petition visit https://petition.parliament.uk/petitions/104880