An odd idea of tax justice really:
Tax justice could solve this. It would firstly tax the gains on rented property as income and not capital gains. Secondly it would deny tax relief on loans for rented property, just as it is denied to owner occupiers
Buying a house to let it out is a business: just as much as buying a car to rent it out is a business. Thus it should be taxed as a business: the interest is a cost of doing business. On the CGT and income: but not everyone does make money on the capital value of a buy to let. Ss what options are there to deal with losses if it\’s all income tax?
But more importantly I\’m afraid that I can\’t behind the idea that tax justice involves the arbitrary reallocation of one or other type of business across the types of tax codes according to the whims of a retired accountat from Wandsworth. It sorta fails that \”justice\” part.