Osborne crackdown on landlord tax relief “wrong”, says think tank
Chancellor George Osborne’s tax raid on buy-to-let landlords is “plain wrong”, according to a leading think tank.
The Institute for Fiscal Studies (IFS) has warned that landlords are already taxed more heavily than homeowners who live in their properties, after Osborne slashed the income tax relief to the basic rate of 20% in the Budget last week.
This is set to be phased in from 2017, and is a bid to reduce “unfairnesses in property taxation”.
The IFS said that the major problem is the lack of housing, and that while the Budget will lead to the low-welfare country the Chancellor promised, the claim that the UK is a “lower tax country” is “not quite as consistent”.
The IFS added that Osborne on one hand has announced £8bn worth of tax cuts; but other taxes are set to rise by £14bn.
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